New Boeing Chief Executive Takes Over with 737 MAX Crisis Unresolved (excerpt)
(Source: Reuters; published Jan. 13, 2020)
By David Shepardson
Calhoun, 62, a long-time Boeing director named chairman in October after the board stripped Dennis Muilenburg of the title, was named chief executive on Dec. 23 following the board’s firing of Muilenburg amid growing concerns about the company’s relationship with regulators and its handling of the MAX.
Boeing has estimated costs of the MAX grounding at more than $9 billion to date and is expected to disclose significant additional costs during its fourth-quarter earnings release on Jan. 29. Boeing faces rising costs from halting production of the MAX this month, compensating airlines for lost flights and assisting its supply chain. It is also considering raising more debt.
Calhoun, a longtime executive at Blackstone private equity group and corporate crisis manager, is already working to repair the company’s relationships with regulators, airlines and lawmakers. He previously headed a General Electric (GE.N) division that included airplane engines. (end of excerpt)
Click here for the full story, on the Reuters website.
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Former Boeing Chief Dennis Muilenburg Leaves with $62M (excerpt
(Source: BBC News; posted Jan. 13, 2020)
Mr Muilenburg will not receive severance pay, according to a regulatory filing by Boeing.
Boeing fired Mr Muilenburg in December to restore confidence in the firm after two deadly crashes involving its 737 Max plane.
It said that Mr Muilenburg received the benefits he was "contractually entitled to" and that no annual bonus was paid.
In addition to the $62m in compensation and pension benefits, Mr Muilenburg holds stock options that would have been worth $18.5m at the closing price on Friday. (end of excerpt)
Click here for the full story, on the BBC News website.
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