(Adam Berry/Bloomberg News)

By Julie Johnsson |
Boeing Co. CEO James McNerney earned total compensation worth $19.4
million in 2009, a 17 percent boost from prior-year results, as the
Chicago aerospace manufacturer struggled to overcome turbulence in the
aviation market and production delays with its 787 Dreamliner.

But much of McNerney’s pay gain was on paper, the result of an
accounting change that increased the actuarial value of the pension
benefits that he had accrued to $5.7 million vs. $1.9 million in 2008,
said Boeing spokesman Chaz Bickers.

McNerney’s salary and incentive compensation actually fell 38 percent to $9.1 million for the year, according to Boeing’s complex pay formula, which was spelled out in a Securities and Exchange Commission filing on Monday.

McNerney was paid the same salary as in 2008: $1.9 million. His long-term incentive plan pay-out was halved to $2.2 million after Boeing fell short of the cumulative profit established by its board for the years 2007 through 2009.

However, McNerney’s cash bonus of $2.3 million increased 59 percent over 2008 levels after Boeing’s core operating performance improved from the prior year, when a strike shut down aircraft production for 52 days.

Boeing ended 2009 strongly, rebounding from a net loss of $401 million in 2008 with a $5.6 billion profit, or $1.84 per share. Boeing also gained momentum with the first flight of the 787 Dreamliner, an aircraft that has broken records for both sales and delays.