Boeing's former CEO Dennis Muilenburg, who resigned last month after 30 years with the planemaker amid the Max Jet 737 crisis, is being denied millions in severance but will still walk away with millions more.
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In a filing late Friday the company stated:
"Mr. Muilenburg is not entitled to-and did not receive-any severance or separation payments in connection with his retirement after more than 30 years with the Company. In addition, the Board has confirmed that Mr. Muilenburg will receive no payment under the Company’s annual incentive plan for 2019."
The "forfeited" payments, based on certain performance awards and detailed in the filing, would have been valued at $14.6 million. Muilenburg is also giving up thousands of performance-based restricted stock units and performance awards that could be worth between $30 and $40 million, according to reports.
That said, he will receive payments he is entitled to including $4.3 million in stock awards, $28.5 million in pension and deferred compensation, while the "vested long-term incentive awards", would be $29.4 million, based on the closing stock price on January 9, 2020.
These payments equal about $62 million, according to the company. Additionally, he also holds options to purchase 72,969 shares of common stock.
Following two fatal crashes of the Max Jet 737, the aircraft was grounded globally. Muilenburg attempted to guide its return to service with regulators and pilots however pressure mounted over Boeing's relationship with the Federal Aviation Administration which some deemed too close for comfort. Additionally, retired Boeing manager, Edward Pierson, turned whistleblower telling accounts of "alarming" conditions at Boeing's 737 factory in Renton, Washington, where two Max planes that crashed were built.
Following Muilenburg's resignation Boeing's board of directors "decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders," the company said.
David Calhoun, Boeing's new CEO begins his job Monday and he has a full plate.
Just this week, documents surfaced revealing inappropriate emails from Boeing's employees discussing the Max jet among other things.
In a statement the company apologized:
These communications do not reflect the company we are and need to be, and they are completely unacceptable. That said, we remain confident in the regulatory process for qualifying these simulators.
And Boeing's board, as reported by FOX Business, is under fire as well amid the ongoing crisis.