Boeing Is Axing Staff. So Why Is Its CEO Getting a US$62 Million Payout?
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January 12, 2020 - by for www.nzherald.co.nz
Boeing's outgoing chief executive, who was terminated last month for his handling of the 737 Max crisis, will exit the company with more than US$62 million ($89m), the company said in a filing on Friday.
The airplane manufacturer said Dennis Muilenburg forfeited a severance package worth US$14.6m. However, he is contractually obligated to receive equity and pension benefits valued at US$62.2m, the company said. In addition, Muilenburg also retains stock options currently worth about US$18.5m.
Boeing announced the details of Muilenburg's exit package on the same day Spirit AeroSystems, one of the largest suppliers of the 737 MAX, sent layoff notices to roughly 2800 employees at its Wichita plant, citing "ongoing uncertainty" involving Boeing's 737 Max jet, airplane parts supplier.
About half of Spirit's annual revenue comes from supplying parts for the MAX, which has been grounded for 10 months following two fatal crashes. In December, Boeing announced it would indefinitely halt production of the Max beginning in January.
The firing of Muilenburg, who had worked for Boeing for more than three decades, was a desperate attempt by the company to win back the trust of regulators and the public after...
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