Latest Breaking News

BumRushDaShow

(129,084 posts) Mon Dec 23, 2019, 10:16 AM Dec 2019

Boeing chief executive Dennis Muilenburg resigns as board seeks 'to restore confidence'

Source: Washington Post

Aerospace giant Boeing announced Monday that chief executive Dennis A. Muilenburg is resigning and being replaced by board chairman David L. Calhoun. Boeing has been upended this year by a massive crisis over crashes of its 737 Max airplane.

“The 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 in a statement. “Under the Company’s new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers.”

Muilenburg’s resignation from his position as CEO and board direction is effective immediately. The company’s chief financial officer Greg Smith will serve as interim chief executive office during the transition period. Calhoun will assume his role as CEO and president beginning Jan. 13 of next year.

Boeing is still trying to regain its footing after the crashes of two passenger jets that killed 346 people and prompted a global grounding of the 737 Max aircraft. On Friday, a Boeing aircraft designed to fly NASA astronauts to space did not achieve the correct orbit. The latest misstep forced the cancellation of the craft’s planned mission to the International Space Station.

Read more: https://www.washingtonpost.com/business/2019/12/23/boeing-chief-executive-dennis-muilenburg-resigns-board-seeks-restore-confidence-wake-max-crisis/

Full new headline: Boeing chief executive Dennis Muilenburg resigns as board seeks ‘to restore confidence’ in wake of 737 Max crisis

That Starliner mission failure seemed to be the last straw too.

Original article and headline -

Boeing CEO resigns and is replaced by board chairman as company finishes year of crisis

By Washington Post Staff
Dec. 23, 2019 at 9:14 a.m. EST

The aerospace company announced that chief executive Dennis A. Muilenburg is resigning and being replaced by board chairman David L. Calhoun. Boeing has been upended this year by a massive crisis over crashes of its 737 Max airplane and, more recently, a flawed rocket launch.

This is a developing story. It will be updated.

https://www.washingtonpost.com/news/business/wp/2019/12/23/boeing-ceo-resigns-and-is-replaced-by-board-chairman-as-company-finishes-year-of-crisis/

15 replies

= new reply since forum marked as read

Highlight:

Boeing chief executive Dennis Muilenburg resigns as board seeks 'to restore confidence' (Original Post) BumRushDaShow Dec 2019 OP

The Times is reporting he was fired. brooklynite Dec 2019 #1

Yup although they are still updating (I posted the updated WaPo article that still claimed "resign" BumRushDaShow Dec 2019 #4

What kind of $$ package is he taking into retirement? mpcamb Dec 2019 #2

More than any of us can even dream of. Voltaire2 Dec 2019 #5

ABC reporting he will receive $40 million for being fired in the wake of two crashes killing Takket Dec 2019 #14

Boards of Directors are a failing anachronistic business model bucolic_frolic Dec 2019 #3

The potential collapse of Boeing is kind of a huge deal. Voltaire2 Dec 2019 #6

Boeing's reputation was thrown away for greed. Lonestarblue Dec 2019 #7

IIRC BumRushDaShow Dec 2019 #8

NYT Reporting That He Was Fired hatrack Dec 2019 #9

Yup posted that here- BumRushDaShow Dec 2019 #12

He will land softly with his golden parachute. redstatebluegirl Dec 2019 #10

Not necessarily. If he was fired and Boeing doesn't play along with the charade... Brother Buzz Dec 2019 #13

... "necessary to restore confidence" yeah, not going to work. irisblue Dec 2019 #11

Its gonna take time... Maxheader Dec 2019 #15

brooklynite

(94,591 posts)

1. The Times is reporting he was fired.

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 10:22 AM

Dec 2019

BumRushDaShow

(129,084 posts)

4. Yup although they are still updating (I posted the updated WaPo article that still claimed "resign"

Reply to brooklynite (Reply #1)

Mon Dec 23, 2019, 10:44 AM

Dec 2019

Boeing Fires C.E.O. Dennis Muilenburg

Boeing on Monday fired its chief executive, Dennis A. Muilenburg. It said Dave Calhoun, the chairman, would replace Mr. Muilenburg, on Jan. 13. Until then, Boeing’s chief financial officer, Greg Smith, will serve as interim chief executive, the company said.

Boeing said in a statement that its 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.”

Mr. Muilenburg had come under fire for his handling of the biggest crisis in the company’s history, the global grounding of the 737 Max after two crashes that killed 346 people. As he has sought to return the aircraft to service, his efforts have angered lawmakers, airlines, regulators and victims’ families.

Before the plane can fly again, the company and regulators must fix an automated system known as MCAS that was found to have played a role in both crashes, ensuring the Max is certified safely and transparently. Boeing’s shares rose more than three percent in early trading Monday.

This is a developing story. Check back for updates.

https://www.nytimes.com/2019/12/23/business/Boeing-ceo-muilenburg.html

mpcamb

(2,871 posts)

2. What kind of $$ package is he taking into retirement?

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 10:30 AM

Dec 2019

Voltaire2

(13,060 posts)

5. More than any of us can even dream of.

Reply to mpcamb (Reply #2)

Mon Dec 23, 2019, 10:51 AM

Dec 2019

Failure at the elite level is very well compensated.

Takket

(21,575 posts)

14. ABC reporting he will receive $40 million for being fired in the wake of two crashes killing

Reply to mpcamb (Reply #2)

Mon Dec 23, 2019, 07:46 PM

Dec 2019

hundreds of people, and the failed space probe launch.

to put that in perspective for you and I, if we worked 45 years from 22 to 67 retirement age, we would have to make $888,888.88 every year to make that much money in a lifetime, or about $428 an hour. The Federal minimum wage is $7.25 an hour, or about 1.7% of the hourly rate (projected over a lifetime) Boeing's CEO will be fired with.

bucolic_frolic

(43,176 posts)

3. Boards of Directors are a failing anachronistic business model

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 10:32 AM

Dec 2019

Rubber stamp yes men with little innovation. But activist boards are just tools for hedge funds, and few individuals vote their shares for ballot initiatives which are filtered like a Bill Barr transcript.

Voltaire2

(13,060 posts)

6. The potential collapse of Boeing is kind of a huge deal.

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 10:51 AM

Dec 2019

Lonestarblue

(10,011 posts)

7. Boeing's reputation was thrown away for greed.

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 10:57 AM

Dec 2019

Expecting software to overcome an engineering change of engine placement that made the 737 Max less safe, and then not training or even telling pilots about the change is outrageous malfeasance by a chief executive and a Board of Directors who allowed that change to stand. The CEO should have been fired after the second crash, and the Board of Directors replaced as well. All are at fault for contributing to the deaths of 346 people.

BumRushDaShow

(129,084 posts)

8. IIRC

Reply to Lonestarblue (Reply #7)

Mon Dec 23, 2019, 11:02 AM

Dec 2019

from previous reporting awhile ago, they were also charging "extra" for airlines to have access to certain software related to handling the faults/warnings.

hatrack

(59,587 posts)

9. NYT Reporting That He Was Fired

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 11:13 AM

Dec 2019

Boeing on Monday fired its chief executive, Dennis A. Muilenburg, whose handling of the company’s 737 Max crisis had angered lawmakers, airlines, regulators and victims’ families.

The company said Dave Calhoun, the chairman, would replace Mr. Muilenburg on Jan. 13. Until then, Boeing’s chief financial officer, Greg Smith, will serve as interim chief executive, the company said.

The Boeing board made the decision on a call on Sunday, after a string of disastrous announcements for the company, according to two people briefed on the matter who spoke on condition of anonymity to discuss internal deliberations. Mr. Muilenburg has stepped down effective immediately.

Boeing has been mired in the worst crisis in its 103-year history since the crashes of two 737 Max jets killed 346 people. The plane has been grounded since March, and Boeing has faced cascading delays as it tries to return the Max to the air.

EDIT

https://www.nytimes.com/2019/12/23/business/Boeing-ceo-muilenburg.html?action=click&module=Top%20Stories&pgtype=Homepage

BumRushDaShow

(129,084 posts)

12. Yup posted that here-

Reply to hatrack (Reply #9)

Mon Dec 23, 2019, 12:26 PM

Dec 2019

https://www.democraticunderground.com/10142411219#post4

I expect it is "interpretation" - sortof like the Bolton situation!

redstatebluegirl

(12,265 posts)

10. He will land softly with his golden parachute.

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 11:25 AM

Dec 2019

Brother Buzz

(36,444 posts)

13. Not necessarily. If he was fired and Boeing doesn't play along with the charade...

Reply to redstatebluegirl (Reply #10)

Mon Dec 23, 2019, 05:48 PM

Dec 2019

he could forfeit a $75 million package. If he was smart, he would have stashed a bit of his $23.4 million salary in his mattress.

https://www.crainsnewyork.com/markets/boeing-ceo-could-forfeit-75-million-pay-benefits

irisblue

(32,980 posts)

11. ... "necessary to restore confidence" yeah, not going to work.

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 11:48 AM

Dec 2019

The Board of Directors have blood on their hands as well

Maxheader

(4,373 posts)

15. Its gonna take time...

Reply to BumRushDaShow (Original post)

Mon Dec 23, 2019, 08:24 PM

Dec 2019

Get the software taken care of..putting the max back into service..

Boeing needs to offer discounts to the airlines..to be passed to the
customers.. 50%...That will turn a few heads...

Reply to this discussion