Former CEO Dennis Muilenburg will receive no severance package: Boeing

Aircraft manufacturer Boeing recently said that ousted CEO Dennis Muilenburg will not be receiving any severance package. According to reports, the company also said that Muilenburg will not be getting a 2019 compensation that comes under the company's annual bonus plan. Muilenburg was asked to step down as the CEO after he was criticised for his way of handling of the 737 MAX issue.

'Muilenburg will not be entitled to severance package'

In a statement, Boeing said that the ousted CEO will not be entitled to any kind of monetary package in relation to his retirement after being associated with the company for more than 30 years. The company further added that Muilenburg had foregone a sum of $14.6 million in 2019 performance awards. According to reports, the 55-year-old will still receive a pension, incentives and compensation benefits amounting up to $62.2 million.

Muilenburg will also have the option of buying almost 73,000 shares, each having a value of almost $76. Boeing on December 23 fired its Chief Executive Officer (CEO), Dennis Muilenburg, in an apparent attempt to restore the confidence of the public and the regulators amid the ongoing crisis. Muilenburg had worked for Boeing for more than three decades but the flawed 737 Max aeroplane tightened the scrutiny by the Federal Aviation Administration which forced the company to let go its 55-year-old CEO.

"The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders,” said the company in a statement.

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“Under the Company's new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers," it added.

Boeing replaced Muilenburg with board member David Calhoun. Calhoun is expected to take over the post on January 13. According to reports, Calhoun will receive a base pay package of $1.4 million.

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737 MAX grounded in March

The 737 MAX plane was officially grounded in the month of March after a design flaw led to two Boeing 737 MAX crashes in which Lion Air Flight 360 crashed off the coast of Indonesia, claiming the lives of 189 people and Ethiopian Airlines 302 crash claimed the lives of 157 people 7 months later. Former CEO Dennis Muilenberg accepted the fact that both the fatal crashes had repetition in the activation of a flight control software function called the MCAS (Maneuvering Characteristics Augmentation System) after it was installed with a faulty sensor.

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(With inputs from agencies)