Boeing CEO Muilenburg won't get most of his 2019 pay
Nov 08 2019
Calhoun claimed Muilenburg had questioned not to obtain a bonus for 2019 following lawmakers lambasted the CEO about his pay at the hearing final week.
While Muilenburg was "doing all the right things" prior to the questioning, the experience "changed him for life", Calhoun said.
"Remember, Dennis didn't create this problem", Calhoun said Tuesday.
The aforementioned stock and bonus money composes a large majority of Muilenberg's pay.
Muilenburg suggested scrapping the bonus on November 2, Calhoun said, days after an appearance in Congress in which angry lawmakers and the relatives of crash victims questioned his compensation.
"Congressman, it's not about the money for me", responded Muilenburg.
He also said he will not accept those payments until deliveries for the 737 Max plane to various airlines is complete.
But lawmakers depicted the crashes as evidence Boeing had cut corners on safety to rush the MAX into service to compete with a plane from rival Airbus. Those changes include new retraining material for pilots and tying MCAS to a second air-direction sensor at all times so that a single sensor failure won't push the nose down, as happened before both crashes. In 2018, he received total compensation of $23.4 million, of which $20.4 million was in the form of stock and bonuses.
Mr Muilenburg has conceded, however, that fixing MCAS has taken far longer than Boeing expected.
US airlines are not planning to use the model until January or February, and it could take longer in other parts of the world where regulators will conduct their own reviews of Boeing's work.
A production manager also raised safety concerns about speeding up the Max's assembly line.
"It came in two fronts: one, no short-, no long-term bonus, and three, no consideration for equity grants, until the MAX in its entirety is back in the air and flying safely", Calhoun said.
But he added that the Boeing board believes Muilenburg has done everything right during this crisis and that he still has the confidence of the board. Several of the committee members questioned Muilenburg about his compensation and wondered why he hadn't agreed to forfeit his salary after the two crashes the resulted in 346 deaths and the grounding of the 737 MAX.
Boeing just replaced Kevin McAllister, who had been president and CEO of Boeing Commercial Airplanes, the unit of Boeing that builds the Max and other passenger jets.
The company removed Muilenburg as board chairman october 11, saying that the move would allow him to better focus on getting its best-selling 737 Max back in the air after it was banned by aviation regulators around the world after the crashes.