Boeing CEO says he considered resigning, is taking pay cut
Boeing CEO Dennis Muilenberg says he considered resigning amid fallout from the fatal 737 Max crashes.
Muilenberg told a New York Times conference he thought about it, but decided it wasn’t in his character. He says he feels obligated to returning the Max to service.
The Lion Air crash out of Indonesia resulted in the death of 189 people and the Ethiopian Airlines crash led to 157 deaths. It’s believed to be linked to an automated system that pushed the nose of the plane downwards.
The Boeing board did strip Muilenburg of his chairman title and appointed Dave Calhoun is his place. While Muilenberg will be staying on as CEO, he announced this week he’s giving up most of his 2019 salary, and won’t receive bonuses until the Max is deemed safe. In 2018 Muilenburg received a total compensation of $23.4 million, including stocks and bonuses, reports CNN.
Recently Muilenburg also testified in front of the House Transportation Committee on Capitol Hill, in which he attempted to defend Boeing after those two fatal 737 Max crashes, ultimately telling Congress that safety “is not our business model.”
In addition to the tragic loss of life, the crashes and subsequent grounding of the jets in March has cost the company billions, and Boeing is in the process of reaching settlements with families of the crash victims.