Boeing CEO Dennis Muilenburg won’t accept bonus in wake of plane crashes
Nov. 5 (UPI) — Boeing CEO Dennis Muilenburg will not take a bonus until problems that led to the crashes of two 737 Max jets are fixed and the planes are back in the air, the company said Tuesday.
Boeing Chairman David Calhoun told CNBC it was Muilenburg’s idea to forgo his bonus in 2019 and concentrate on leading the revamping of the flight-control system blamed for the crashes that killed 346 people.
The company removed Muilenburg as board chairman Oct. 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.
Calhoun said Muilenburg called him Saturday “with the purpose of suggesting that he not take any compensation for 2019 in the form of bonuses, which of course is most of your compensation.
“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 added.
According to Boeing’s 2019 proxy statement to shareholders, Muilenburg made $23 million last year, $13.1 million of it from a company performance bonus and another $7.3 million from stock awards.
One 737 Max crashed off the Indonesian coast, operated by Lion Air, on Oct. 29, 2018. The second jet, operated by Ethiopian Air, crashed there on March 10.