How will firing of Boeing CEO impact airline industry?
Dennis Muhlenberg, former CEO of Boeing, left behind a long list of problems, but he leaves with a significant golden parachute.
The exact amount of money he will leave with is not yet clear. This will depend on his negotiations with the company, including whether, how will the company arrange for his departure – for example, it was retirement? Resignation or dismissal?
But public documents show that Muhlenberg may be eligible for a payment plan of more than $ 30 million and possibly a severance pay of about $ 7 million. Muhlenberg also has another $ 20 million and a pension package totaling more than $ 11 million..
Dennis Muehlenberg is 55, 34 of which he dedicated to the company. He became CEO of Boeing, the world’s largest aerospace company, in 2015, after serving in several other leadership roles at the company, including serving as Chief Operating Officer and CEO of Defense, Space and Security..
His departure comes as the company is mired in setbacks and scandals, including two fatal accidents that killed 346 people and numerous technical problems with the 737 Max, the company’s best-selling commercial aircraft, which has been suspended worldwide. in March 2019. Boeing struggled during this entire time to return the plane to "sky", but I could not do it. The Federal Aviation Administration (FAA) has refused to approve the return of the aforementioned model to service until 2020. After that, the company decided to stop production of the aforementioned model, starting from January next year..
Boeing has continued to produce the 737 Max since its grounding, but uncertainty as to when federal regulators will lift the aircraft’s flight restrictions made it unprofitable to manufacture. Boeing changed the schedule for the 737 Max to return to the skies several times throughout the year, as it became apparent that it was in no way able to satisfy regulators’ concerns about aircraft safety..
The company’s board ruled that «a change of leadership is necessary to restore confidence in the company as it moves forward as it works to rebuild relationships with regulators, customers and all other stakeholders», – the company says.
Boeing CFO Greg Smith will serve as interim CEO until David Calhoun, who is currently chairman of the board, takes over as CEO on January 13, 2020..