Former Boeing CEO gets USD62.2M but loses some benefits

AP – The Boeing CEO who was ousted last month for the company’s botched response to two crashes and the grounding of its best-selling plane will walk away with USD62.2 million, the company disclosed Friday.

Boeing said, however, that Dennis Muilenburg will not get additional severance or a 2019 bonus, and will forfeit stock awards worth USD14.6 million.

Muilenburg, who spent more than 30 years at Boeing, also has unexercised stock options that he has held since 2013 and that are worth more than USD18.5 million at Friday’s closing price.

Muilenburg was fired in late December after failing to get the company’s 737 Max jetliner back in the air.

Boeing board Chairman David Calhoun will take over as CEO tomorrow. He is a former General Electric and Nielsen executive with a reputation as a turnaround specialist. Calhoun, 62, will get a base salary of USD1.4 million but potentially several million more in bonuses and stock awards, including USD7 million if he gets the Max back in service.

The Max was grounded last March after crashes in Indonesia and Ethiopia killed 346 people. It has taken far longer than Boeing expected to fix the plane. This month, Boeing will halt production until it is clear when changes to the plane will be approved by regulators.

Dennis Muilenburg watches as family members hold up photographs of those killed in the Ethiopian Airlines Flight 302 and Lion Air Flight 610 crashes during a hearing on ‘Aviation Safety and the Future of Boeing’s 737 MAX’ on Capitol Hill in Washington. PHOTO: AP