Boeing says no severance package for ousted CEO Muilenburg

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Boeing says no severance package for ousted CEO Muilenburg

Sunday, January 12, 2020

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NEW YORK, United States (AFP) — Former Boeing Chief Executive Dennis Muilenburg, who was criticised for his handling of the 737 MAX crisis, will receive no severance package, the company disclosed Friday.

Muilenburg also will not garner compensation for 2019 under an annual bonus plan, the company said in a securities filing.

Muilenburg was ousted last month as the grounding of the MAX has dragged on after two deadly crashes.

“Mr. Muilenburg is not entitled to — and did not receive — any severance or separation payments in connection with his retirement after more than 30 years with the company,” Boeing said in the filing.

Muilenburg, who worked at Boeing for 34 years, also forfeited $14.6 million in 2019 performance awards the company said.

However, Muilenburg will still receive pension, deferred compensation benefits and long-term incentive awards totalling US$62.2 million, according to figures in the filing.

Muilenburg also holds options to purchase nearly 73,000 shares at around US$76, well below Boeing's current share price Friday of US$329.92.

Boeing on December 23 announced Muilenburg's exit, replacing him with ex-General Electric executive and long-time Boeing board member David Calhoun.

Boeing said the shake-up was needed to “restore confidence” and “repair relationships with regulators, customers and all other stakeholders.”

Calhoun is scheduled to take over as CEO on Monday.

Calhoun will receive a base salary of US$1.4 million and will be eligible for additional performance-based payments.

These include US$7 million in long-term awards based on “continued employment and the achievement of several key business milestones, including full, safe return to service of the 737 MAX,” the filing said.


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