Boeing CEO waived pay but got compensation worth $21 million
Boeing CEO David Calhoun declined a salary and performance bonus for most of 2020 but still received stock benefits that pushed the estimated value of his compensation to more than $21 million, according to a regulatory filing Friday, March 5, 2021. Calhoun, who became CEO in January 2020, received $269,231 in salary for the period before he disavowed his salary in March. AdThe company said Calhoun gave up about $3.6 million by declining most of his salary and a $2.5 million bonus. But most of Calhoun's compensation — valued by Boeing at more than $20 million — came in the form of stock benefits that will vest in the next few years, assuming he remains CEO. Calhoun, 63, was a longtime Boeing board member before being named CEO after the firing of Dennis Muilenburg in December 2019.
Boeing Max cleared for takeoff, 2 years after deadly crashes
(AP Photo/Elaine Thompson, File)After nearly two years and a pair of deadly crashes, the U.S. Federal Aviation Administration has cleared Boeing’s 737 Max for flight. The nation’s air safety agency announced the move early Wednesday, saying it was done after a “comprehensive and methodical” 20-month review process. U.S. airlines will fly the Max once Boeing updates critical software and computers and pilots receive training in flight simulators. The FAA says the order was made in cooperation with air safety regulators worldwide. Anton Sahadi, who lives in Jakarta, Indonesia, and lost two brothers in the Lion Air crash, said it's too early for the Max to fly again.
Boeing CEO Muilenburg won't get most of his pay for '19
(CNN) - Boeing CEO Dennis Muilenburg will not get stock or bonuses that provide most of his compensation, according to the new chairman of the company. In 2018, he received total compensation of $23.4 million, of which $20.4 million was in the form of stock and bonuses. Calhoun said that Muilenburg will receive no stock grants until the plane, grounded since March, is fully back in service. He said that process, which includes deliveries of about 400 planes that Boeing has built during the grounding but not yet delivered, won't be completed until early 2021. But he added that the Boeing board believes Muilenburg has done everything right during this crisis and that he still has the confidence of the board.
How bad are things for Boeing? Investors are about to find out
Scott Olson/Getty ImagesCHICAGO - A top Boeing executive left the company Tuesday, the first to do so in the wake of the 737 Max crisis. McAllister came to Boeing from General Electric in November 2016, after the Boeing 737 Max was well on its way to being certified and after the flawed safety feature at issue in the crashes was already part of the jet's design. Boeing reports its third quarter results Wednesday, and it is expected to show a return to profitability. Investors will be looking for some new guidance as to when the company's best-selling plane, the 737 Max, can return to service. In fact, the agency said on Friday that "the FAA is following a thorough process, not a prescribed timeline, for returning the Boeing 737 Max to passenger service.
Boeing's board strips CEO of chairman role
(CNN) - Boeing CEO Dennis Muilenburg has been stripped of his role as chairman as the company struggles to get its grounded 737 Max jets cleared to fly again. The company's board of directors on Friday said the move was an effort to strengthen "safety management," and Muilenburg will continue as CEO, president and a director. The board elected current independent lead director David L. Calhoun to serve as non-executive chairman, the company said in a statement. Earlier this week, pilots for Southwest Airlines sued Boeing for $115 million in lost compensation they say was caused by the 737 Max grounding. The complaint alleges Boeing decided to "rush" the 737 MAX to market for the sake of profits and in doing so, "abandoned sound design and engineering practices."
Boeing to start paying 737 Max crash victims' families
2006 Getty ImagesCHICAGO - Boeing will begin to pay $50 million in financial assistance to the families of more than 300 victims of the two 737 Max crashes, the company announced Monday. Clifford added that if Boeing "wanted to give real relief to the families, they should work with the insurance partners of Ethiopian Airlines to expedite payments to the families." Michael Stumo, the father Samya Stumo who was killed in the Ethiopian Airlines crash, told Congress in July that Boeing's initial announcement "seemed like a PR stunt to us." Boeing's 737 Max jets were grounded worldwide in March after Ethiopian Airlines Flight 302 crashed shortly after takeoff, killing all 157 people on board. It came five months after the crash of Lion Air Flight 610, also a 737 Max, in October 2018.
Boeing CEO: 737 Max could face phased in approvals to fly again
A Boeing 737 MAX airplane is pictured on he tarmac with its signature winglet and fuel efficient engines outside the company's factory on March 11, 2019 in Renton, Washington. (CNN) - Aviation authorities from around the world may not immediately follow the FAA's lead whenever the US agency decides to allow the Boeing 737 Max to fly again, Boeing CEO Dennis Muilenburg said Wednesday. "I think a phased ungrounding of the airplane amongst regulators from around the world is a possibility," he said. A phased in recertification will cause problems, since most of the nearly 400 planes in service at the time of the grounding fly for non-US carriers. Muilenburg said Boeing still hopes to get approval for the plane to fly early in the fourth quarter, which beings Oct. 1.
Crash victims' relatives accuse Boeing of putting greed over safety
An American Airlines Boeing 737 Max 8, on a flight from Miami to New York City, comes in for landing at LaGuardia Airport on March 11, 2019, in the Queens borough of New York City. CEO Dennis Muilenburg has publicly said he regrets the deaths and the company set aside $100 million of assistance for victims' families. "I think the families are in agreement that Boeing's apologies to cameras have not been apologies to the families," Stumo testified. Boeing spokesman Peter Pedraza did not dispute the lack of communication with the victims' families. Regulators grounded the 737 Max worldwide in March following the second crash.
Boeing dedicates $100 million to victims of 737 MAX crashes
A Boeing 737 MAX airplane is pictured on he tarmac with its signature winglet and fuel efficient engines outside the company's factory on March 11, 2019 in Renton, Washington. (CNN) - Boeing will pay out $100 million to help support the families and communities of the 346 people who died in two 737 Max crashes in the last year. The company is facing several lawsuits over the 737 Max incidences. Boeing's 737 Max jets were grounded worldwide in March after one of the vehicles, flown by Ethiopian Airlines, crashed shortly after takeoff. It followed a crash in late 2018 of a 737 Max flown by Indonesian airline Lion Air.