EMBR3 Embraer SA

   By Doug Cameron 
 

Boeing Co. said Dave Calhoun would succeed its veteran lead director, as the aerospace giant navigates a deal with Embraer SA and maps out its production plans for the next decade.

Ken Duberstein, who turns 74 next month and has been a Boeing director since 1997, will hand over leadership of the board to Mr. Calhoun, a senior managing director at Blackstone Group who has been on the board since 2009. Mr. Duberstein, a former chief of staff to President Ronald Reagan, will be nominated to serve on the 17-member board for another year.

Boeing is pursuing a deal with with Brazilian planemaker Embraer and weighing the launch of an all-new twin-aisle jetliner that would enter service in the middle of the next decade. But talks with Embraer have stumbled on resistance from some Brazilian officials to Boeing taking control of the company's defense arm. Boeing said it remains interested in Embraer but could walk away if it can't secure the right terms.

Boeing is also in talks with more than 50 airlines and leasing companies about a family of new jets that would seat between 230 and 250 passengers. Carriers are pressing Boeing on the price and final specifications of a new plane. A final decision on whether to proceed is expected this year.

Boeing also revealed in its annual proxy on Friday that Chief Executive Dennis Muilenburg received $18.45 million in total compensation last year, a 22% increase from 2016. That included $1.7 million in salary and $8.4 million in incentive payments.

The company's shares climbed 89% in 2017 and Boeing's market value surpassed General Electric Co. to make Boeing the largest U.S. manufacturing company and the biggest on the Dow Jones Industrial Average, accounting for almost 10% of the benchmark.

Boeing reported record operating profits last year and delivered 763 commercial jets, an all-time high. Shares have also been bolstered by one of the largest corporate share buyback programs.

Major U.S. aerospace shares climbed 70% last year, outperforming the S&P 500 by 50 percentage points, though this fell to 13% excluding Boeing, according to Vertical Research Partners.

Write to Doug Cameron at doug.cameron@wsj.com

(END) Dow Jones Newswires

March 16, 2018 16:51 ET (20:51 GMT)

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