Boeing fired Mr Dennis Muilenburg in december to restore confidence in the firm after two deadly crashes involving its 737 Max plane took place. More than 340 people died in the disasters, prompting accusations by the general public that Boeing put profit before safety.
Families of the victims welcomed Mr Muilenberg’s resignation as overdue but they said Boeing’s decision to replace him with David Calhoun ,who himself is a long-time board member raised questions about its commitment to change. Boeing has faced scrutiny since the fatal crashes of two 737 Max planes, which killed nearly 350 people. It is facing multiple investigations following the crashes in Indonesia and Ethiopia.
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. Dennis Muilenburg came under fire for his pay last year during an appearance before US lawmakers. They accused the firm of building “flying coffins”. The company also is facing a fine by US regulators worth $5.4m for “knowingly” installing faulty parts on its 737.
The planemaker has the right to dispute the fine, which follows a previous $3.9m fine the FAA proposed against the US aerospace giant. The planemaker also confirmed that David Calhoun, its new boss, could receive a bonus of $7m, subject to whether or not he can get the 737 Max flying safely again.
Boeing said it was confident that Mr Calhoun was the right person “to strengthen Boeing’s safety culture, improve transparency and rebuild trust”. He was appointed as chief executive and president of Boeing having served on the firm’s board since 2009.
Boeing named David Calhoun, who has served on the firm’s board since 2009 and is its current chairman, as chief executive and president.
“While the resignation of Mr Muilenburg is a step in the right direction, it is clear that the Boeing Company needs a revamp of its corporate governance,” said Paul Njoroge, who lost his wife, three children and mother-in-law when Ethiopian Airlines Flight 302 crashed in March.
Zipporah Kuria, whose father was also killed on the Ethiopian Airlines flight, said Mr Muilenburg should have been replaced “a long time ago” but responsibility for the crashes is shared.
“I feel as though a lot more people should have resigned including the person who’s becoming CEO”, she added.
Boeing’s board said it had “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 Calhoun, a private equity executive, will take over from 13 January. Lawrence Kellner, a board member since 2011, is to become non-executive chairman immediately.
