Boeing’s Ousted Chief Gets $11.5 Million in ’05

Harry Stonecipher, the former Boeing Co. chief executive who worked less than three months last year before he was ousted over an extramarital affair, received nearly $11.5 million in salary and stock awards in 2005, according to a filing with the Securities and Exchange Commission.

Stonecipher got $496,422 in salary and $11 million from incentive stock awards. The value of the stock incentive plans, based on shares issued the previous year, was bolstered by a 36% jump in Boeing’s stock. The firm also contributed $694,000 to his retirement and 401(k) plans, according to the filing Monday.

Stonecipher’s take-home pay topped that of all other executives at the Chicago-based aerospace giant, including W. James McNerney Jr., who replaced him as chairman and chief executive.

Boeing in July hired McNerney away from 3M Corp., where he was chief executive. Based on a prorated annual salary of $1.75 million, McNerney was paid $847,346 and awarded a bonus of almost $2.3 million. He also received $25.3 million in restricted stock to match what he would have made at 3M.

Stonecipher headed McDonnell Douglas Corp. when Boeing bought the company in 1997 to form the world’s largest aerospace firm. He was brought out of retirement in 2003 to help repair Boeing’s reputation in the aftermath of two Pentagon contracting scandals.

But in early 2005 Stonecipher became embroiled in a scandal of his own after revelations surfaced that he was having an extramarital affair with a mid-level female executive for Boeing. He was forced to resign in March.

The incentive award stock was issued to Stonecipher at $43.53 per share. By the end of 2005, Boeing shares were hovering near a five-year high of about $70 a share.

The company’s rising stock value also bolstered compensation for other senior Boeing executives.

James Albaugh, head of Boeing’s defense business, earned $806,923 in salary last year, up from $725,000 a year earlier, plus $693,000 in bonuses in 2005 compared with $647,000 the year before.

He also had $6.9 million in incentive stock awards in 2005, up from $2.7 million a year earlier, and $114,568 in other compensation, including personal use of company aircraft.

Alan R. Mulally, president of Boeing’s thriving commercial airplane business, was paid $825,000 in salary last year, a slight increase from $819,692 in 2004, plus $736,300 in bonuses, versus $469,000 a year earlier.

Mulally also had $7.58 in incentive stock awards last year, compared with $2.7 million in 2004, plus $119,654 in other compensation for personal use of company aircraft and tax reimbursements.

James Bell, Boeing’s chief financial officer who temporarily served as CEO last year, was granted a special restricted stock award of $2 million.

Bell, who is from South Los Angeles, earned $640,962 in salary and received $550,000 in bonuses.

Boeing is the largest private employer in Southern California with about 30,000 workers.

Shares of Boeing rose 53 cents Tuesday to $73.16.