Being CEO, Dennis Muilenburg has been relinquished from his duties as the head of the organization. The CEO has been under criticism due to the losses incurred due to incidents like plane crashes. The CEO is accused of mishandling the 737 MAX crashes, and the company faced a lot of backlash due to it. 737 Max is facing a global flight ban.
The Former CEO will not receive any Severance and has to let go of his stock awards worth millions of dollars as he is accused of mishandling the two plane crashes. The former CEO served the company for decades; however, he quits without any incentives.
Boeing CEO Sacked over botched handling of 737 MAX Plane Crashes
1] No Benefits for Muilenburg
Muilenburg will not receive any bonus for the year 2019 and had forfeited the equity awards worth 31 Million USD. In a regulatory filing, the company revealed this.
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The downfall of the CEO perpetuated after the two massive plane crashes took place in the company’s 737 MAX Aircraft. The plane crashes killed more than 346 people on board. The crashes led to a Global flight ban on the company and severely impacted the Boeing image in the market.
2] Company Rebuked for the Crashes
FAA head Steve Dickson openly rebuked the company for its stance in the plane crashes and said that plane production should be stopped temporarily. The Starliner Space capsule of the Boeing also failed to dock in the International Space Station that brought significant embarrassment to the company. After a few days only, the news of board voting to dismiss Muilenburg started doing rounds.
3] David Colhoun becomes the New CEO
David Colhoun has been named the new CEO of the company. He is a General Electrician Veteran at the company and has spent decades in Boeing.
4] Muilenburg Leaves amid severe criticism
In the cases of termination and expulsion, the employees and executives do not get any severance benefits as they failed to abide by company rules or policies. The Boeing Crashes and the subsequent handling of the issue by the former CEO have been under criticism by the Regulators and Senators. Senators even grilled the Boeing CEO over 737 Max Crashes by calling them ” Flying Coffins.”
Muilenburg did not have any agreement on fixed-term employment with the planemaker.