Fired Boeing CEO Cashed Out $60+ Million In Benefits

President Trump handshaking with Boeing's chief executive, Dennis Muilenburg after discussed the company's plans to halt productio...

President Trump handshaking with Boeing's chief executive, Dennis Muilenburg after discussed the company's plans to halt production of the 737 Max on Dec 18, 2019. Image: BOEING.

The biggest question looming since Boeing ousted CEO Dennis Muilenburgtwo days before Christmas was whether the longtime executive would receive severance. The Chicago-based plane maker answered that question late Friday: No. In a filing with the Securities and Exchange Commission, Boeing said Muilenburg, whose departure from the company took effect Dec. 22 and was announced Dec. 23, is not entitled to any severance or separation payments in connection with his "retirement'' after more than 30 years with Boeing.

Executive employment agreements are usually generous, with few reasons where severance isn't warranted. Former McDonald's CEO Steve Easterbrook, for example, received 26 weeks of pay after he was fired for violating company policy by having a consensual relationship with an employee. He did forfeit millions in stock options. Boeing said Muilenburg, who joined Boeing as an intern in 1985, will not receive any payment under the company's 2019 incentive plan, usually a key component of compensation. He forfeited stock awards valued at $14.6 million.

Boeing Company President and Chief Executive Officer Dennis Muilenburg appears before a Senate Transportation Committee hearing on 'Aviation Safety and the Future of Boeing's 737 MAX' on Capitol Hill in Washington, Oct. 29, 2019.

He will, however, receive long-term incentive compensation and retirement benefits covered by his contract. The value, according to Boeing: $62.2 million. Muilenburg also retains options to purchase nearly 73,000 shares of Boeing stock at $75.97, which vested in 2013. Boeing's stock closed Friday at $329.92. The stock was as high as $446 before the Max crisis.

Boeing reveals new 'very disturbing' documents on 737 Max jetliner to FAA, Congress Boeing said incoming CEO David Calhoun, a Boeing board member who begins his new role Monday, will be paid a salary of $1.4 million and was issued $10 million in restricted stock units for money he gave up when he agreed to join Boeing. He will also be eligible for bonuses and other incentive awards, including a $7 million long-term incentive award if Boeing meets certain key business milestones, including the "full safe return to serve of the 737 Max.'' These memos definitely don't help': Damning Boeing 737 Max emails add to safety anxiety''.

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