What? No bonus? Boeing boss gives up perks after Senate grilling over 737 crashes Boeing Chief Executive Dennis Muilenburg has decided not to take a bonus for 2019 after United States lawmakers hammered him over compensation during Capitol Hill hearings last week in the wake of two 737 MAX plane crashes.
Calhoun said Muilenburg called him Saturday "with the objective of suggesting that he not take any compensation for 2019 in the form of bonuses, which of course is most of your compensation".
Muilenburg last week endured two days of bruising grilling and criticism from lawmakers probing the challenges that led to the two incidents of the top-marketing jet.
In crisp comments that contrasted with Muilenburg's occasionally hesitant responses before Congress, Calhoun acknowledged that the control system implicated both crashes was flawed.
Boeing has said recently that it expects the Federal Aviation Administration to approve its changes to the Max before the end of the year.
He also opted out of consideration for equity grants until the 737 Max is back in the air "in its entirety", Calhoun said. US airlines aren't planning on using the plane until at least January or February, and it could take longer in other parts of the world, where regulators want to conduct their own reviews of Boeing's work.
Calhoun took office as Boeing's chairman last month after Muilenburg was stripped of the title.
"No one was hiding anything".
Boeing's board has saved a lower profile for the duration of the crisis in excess of the MAX, which was grounded worldwide in March next the second of the two crashes. "It was a set of engineering decisions that ended up being wrong", Calhoun said.
Muilenburg suggested scrapping his bonus during a phone call over the weekend, Calhoun said.
Boeing will work to compensate customers for the disruption caused by the grounding, Calhoun said, addressing recent criticism from the CEOs at Southwest Airlines Co. and American Airlines Group Inc. In 2018, he received $20.4 million in stock and bonuses out of the $23.4 million total compensation he got for the year. Muilenburg's compensation a year ago was worth $23.4 million, including a $13.1 million bonus and $7.3 million in stock awards.
Muilenburg will likely lose out on at least $10 million-and possibly significantly more-since 90% of his compensation is at risk, under a formula spelled out in Boeing's proxy statement. He also received stock awards.