Affair causes Boeing chief to miss $38m share bonanza

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The Independent Online

The affair with a female colleague which forced Harry Stonecipher to resign as chief executive of Boeing has cost him more than his job as one of the most high-flying executives in corporate America. He will also miss out on shares worth up to $38m (£20m).

Mr Stonecipher, 68, was due to get the massive shares award this year, to reflect his impressive record in turning around Boeing and tackling the corporate scandals it has been mired by.

The generous performance bonus was disclosed in a filing to America's Securities and Exchange Commission last week, but that was before details of Mr Stonecipher's affair emerged.

The shares, which would have expired in 2010 and depended on Boeing's shares roughly doubling from current levels, have now been scrapped.

Boeing said on Monday its board had received details of Mr Stonecipher's affair with a Washington-based employee, Debra Peabody, which it deemed to be embarrassing.

The married father of two was asked to resign because the nature of the affair led to questions about his judgement as its chief executive, Boeing said.

However, there has been good news for the aviation industry veteran this week. Despite being effectively sacked, Mr Stonecipher will receive $3.6m in salary and bonus for 2004.

Mr Stonecipher may also not have to clear his desk entirely at the Chicago-based company. He will receive an office and a secretary supplied by Boeing to allow him to he clear up any unfinished business he has at Boeing, the company said.