Boeing Co. CEO McNerney earns $12.9 million in 2007 compensation

Boeing Co. Chief Executive Jim McNerney received compensation valued at $12.9 million last year, a nearly seven percent decrease from what he earned a year ago when he received extra money for relocation and security, according to a regulatory filing Friday.

McNerney, who is also Boeing's president and chairman, earned a salary of $1.8 million and a performance-based bonus of $4.3 million in 2007 -- a year that saw the Chicago-based aerospace company grow its profit 84 percent.

The bulk of the 58-year-old's pay package came in stock and options valued at $5.9 million at the time they were awarded, according to the company filing with the Securities and Exchange Commission. Last year, McNerney received stock and options valued at $6 million.

Both McNerney's salary and bonus were higher than in 2006, but the total value of his compensation package was marked by a 53 percent decrease in other compensation he received.

In 2007, McNerney took home about $966,000 in other compensation, a figure that covered perks for everything from personal use of company aircraft and financial planning to a $90,000 backup generator for his home, installed for "business continuity purposes." Last year, McNerney's other compensation was nearly $2.1 million, about half of which was for moving expenses.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals released by the companies.

The world's No. 2 commercial jet maker has been plagued with a series of delays for the launch of its 787, the world's first large commercial airplane made mostly of carbon-fiber composites.

Boeing has said the much-anticipated aircraft is to take its first flight in June and the first customer delivery is to come in early 2009.

The company is also is in the midst of protesting a decision by the U.S. Air Force to award a $35 billion contract to rival European Aeronautic Defence and Space Company and its partner, Northrop Grumman.

Despite the headaches, Boeing's profit has soared.

The company earned $4.1 billion, or $5.28 per share, last year, up from $2.2 billion, or $2.85 per share, in 2006.

Revenue climbed 8 percent to $66.4 billion, with the commercial airplane business overtaking the defense unit in providing 50.3 percent of the total.

Boeing shares climbed $2.05, or 2.8 percent, to $76.23 in Friday trading.