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Fired Boeing CEO still gets $62M - even without severance pay or bonus

Reuters, AP/Washington/Chicago
Filed on January 11, 2020 | Last updated on January 11, 2020 at 06.08 pm
Fired Boeing CEO still gets $62M - even without severance pay or bonus
Boeing says Dennis Muilenburg received his final benefits because he was contractually-entitled to it.

(AP)

Muilenburg also holds stock options vested in 2013, worth $18.5M at closing price on Friday

Boeing's ousted chief executive officer, Dennis Muilenburg, is leaving the company with $62 million in compensation and pension benefits but will receive no severance pay in the wake of the 737 MAX crisis.

Muilenburg was fired from the job in December as Boeing failed to contain the fallout from a pair of fatal crashes that halted output of the company's bestselling 737 MAX jetliner and tarnished its reputation with airlines and regulators.

The compensation figures were disclosed in a regulatory filing late on Friday during a difficult week for Boeing when it also released hundreds of internal messages - two major issues hanging over the company before new CEO David Calhoun starts on Monday.

In addition to the $62 million in compensation and pension benefits, Muilenburg holds stock options that vested in 2013, Boeing said. They would be worth $18.5 million at the closing price on Friday.

"Upon his departure, Dennis received the benefits to which he was contractually-entitled and he did not receive any severance pay or a 2019 annual bonus," Boeing said in a statement.

FAA seeks $5.4M fine

Meawhile, the US Federal Aviation Administration said it plans to fine Boeing $5.4 million for installing substandard parts on the wings of 178 of its 737 MAX jetliners, which have been grounded since two crashes linked to other systems on the planes.

The proposed civil penalty follows an FAA announcement last month that it would fine Boeing more than $3.9 million for installing the same parts on other versions of the 737.

Boeing said it has no reports of the parts causing a problem during flights. The company said it is working with airlines to make corrections.

The FAA's proposed fine covers tracks that guide the movement of control surfaces called slats on the front of the wings on 737s, both the MAX and the previous model of 737, called the NG.


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