Sacked Boeing boss to receive more than £45m in compensation from company

Departed CEO previously said he would forgo compensation until the 737 Max had fully returned to service

Dennis Muilenburg was forced out of his role as Boeing CEO last month (AP)

Dennis Muilenburg, who was ousted as Boeing’s chief executive last month as the company contended with the biggest crisis in its history, will depart with more than $60m (£45m), the company said Friday.

Mr Muilenburg will not receive any additional severance or separation payments in connection with his departure, and Boeing said he had forfeited stock units worth some $14.6m (£11.2m).

But the value of the other stock and pension awards he is contractually entitled to receive is $62.2m (£47.6m), the company said. Mr Muilenburg also has stock options that could be worth many millions more.

“We thank Dennis for his nearly 35 years of service to the Boeing Company,” the company said in a statement. “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’s new chief executive, David Calhoun, will receive a $7m (£5.3m) bonus if he is able to get the 737 Max, which has been grounded since March, safely flying again. The jet was grounded in the wake of two deadly crashes that left 346 people dead.

The issue of Mr Muilenburg’s compensation was the source of heated exchanges during his testimony before congress in October.

“Are you taking a cut in pay? Are you working for free from now on until you can cure this problem?” Representative Stephen Cohen asked Mr Muilenburg at one point. “These people’s relatives are not coming back. They’re gone. Your salary is still on.”

Mr Muilenburg went pale, noting that the board determines his pay.

After the hearings, Mr Muilenburg called Mr Calhoun, then the Boeing chair, and offered to forgo any compensation until the Max had fully returned to service. Speaking at a New York Times conference soon after that, Mr Muilenburg said he decided to give up “tens of millions of dollars” after meeting with families of victims of the crashes.

“I felt it was important for me to forgo those bonuses and send a message of responsibility,” he said.

Boeing said Mr Calhoun, who starts as chief executive Monday, would receive a base salary of $1.4m (£1m) and be eligible for an annual target bonus of $2.5m (£1.9m), long-term incentive awards worth $7.5m (£5.7m) and restricted stock units worth $10m (£7.6m).

Mr Calhoun will receive an additional bonus of $7m if the company reaches key milestones, including fully returning the Max to service.

Boeing also said that Kevin McAllister, who was ousted as head of Boeing Commercial Airplanes last year for his mishandling of the Max crisis and key customer relationships, had forfeited stock and dividend awards worth $52.9m (£40.4m).

Mr McAllister received a cash payment of $14.75m (£11.3m), which reflected the value of a pension benefit he forfeited when he left an earlier job, but did not receive any other compensation in connection with his departure.

The New York Times