Boeing’s Board Acted After Months of Mounting Pressure
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(A Boeing spokesman was unable to comment on whether Muilenburg's pay would be reduced. His compensation totaled $23.39 million in the last fiscal year, including the value of stock grants.)
Boeing recently announced more than $8 billion in costs tied to the crashes, and its stock price has declined by about 15 percent since early March.
Boeing customers have lost hundreds of millions of dollars because of the grounding and are becoming increasingly impatient. They complain of inconsistent updates from the company about the status of the plane.
Executives at the company fear there will be long-term damage to their relationship with airlines, who may be tempted to defect to Airbus, Boeing's biggest competitor.
"The relationship at the moment is rocky," Michael O'Leary, chief executive of Ryanair, said in an interview. "Given that we are their largest customer in Europe, we are deeply disappointed. Our view is that Boeing has not addressed this as seriously as was warranted."
The decision to strip Mr. Muilenburg of his chairman title was the culmination of a monthslong debate within the company over whether to hold top executives accountable.
Pressure on the board has mounted in anticipation of Mr. Muilenburg's scheduled testimony in front of Congress at the end of the month, the first time a Boeing executive has appeared at a hearing related to the crashes.
The board was eager to make a move before the hearing to...
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