Ousted Boeing CEO Dennis Muilenburg to receive $60m in stock and pension

Clay Curtis
January 14, 2020

Changing CEOs was the easy part.

Last month, Boeing fired its chief executive Dennis Muilenburg.

Richard Aboulafia, vice president of analysis at the Teal Group, said in an essay for Leeham News that Calhoun must decide "either to be a fantastic nine-month CEO, or he will stay on, becoming a potentially disastrous multi-year CEO". He and other critics accused the company of putting profit over safety.

Return the 737 Max to service safely.

"This is a crucial time for Boeing", Calhoun said.

After attending a presentation the company gave to regulators in 2015, another employee said, "it was like dogs watching TV".

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 $18.5 million at Friday's closing price. His fellow directors described him Monday as the right fit for CEO.

Boeing board Chairman David Calhoun will take over as CEO on Monday. "We're confident Dave will take Boeing forward with intense focus on our values, including safety, quality and integrity". The bungling cost former CEO Dennis Muilenburg his job, and the bad news is far from over: "Boeing is expected to reveal one of the largest writedowns in its history this month along with fourth-quarter results".

Boeing is halting Max production until it knows when the Federal Aviation Administration will approve fixes that company engineers are making to the plane's software and other systems.

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The documents showing employee conversations were released the same week an older model designed by the same company in the 90s, the Boeing 737-800, crashed shortly after takeoff in Tehran, killing all 176 passengers and crew aboard. Spirit AeroSystems, which makes fuselages for the Max, said Friday it will lay off 2,800 people. USA airlines have canceled Max flights into early April or later.

The messages underscore how important to Boeing financially it was to avoid simulator training for the Max.

Fifty basis points is one-half of one percentage point.

"Recent developments suggest a more costly and protracted recovery for Boeing to restore confidence with its various market constituents, and an ensuing period of heightened operational and financial risk", said Moody's Jonathan Root.

Credit rating agency Moody's Investors Services has placed Boeing's debt ratings, including its A3 senior unsecured ratings, under review for a downgrade as the Boeing 737 MAX crisis stretches on into 2020.

In one email, an employee said the 737 Max was "designed by clowns who in turn are supervised by monkeys".

The messages released by Boeing also show employees voicing concerns over deficiencies with a Max simulator.

It is not clear when regulators will let the Max fly again. It is facing multiple investigations following the crashes in Indonesia and Ethiopia. Engineering issues have been called into question as a potential cause of the crashes. Separately, the FAA has in recent weeks announced it wants to fine Boeing $9.3 million U.S. for installing substandard parts on the wings of some Max jets and other 737s - more than 300 planes in all.

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