Dennis Muilenburg, president and CEO of the Boeing Company, testifies before the House transportation and infrastructure Committee October 30, 2019, in Washington, DC. Photo: AFP / Olivier Douliery

Former Boeing Chief Executive Dennis Muilenburg, who was criticized for his handling of the 737 MAX crisis, will receive no severance package, the company disclosed Friday.

Muilenburg also will not garner 2019 compensation under an annual bonus plan, the company said in a securities filing.

Muilenburg was ousted last month as the grounding of the MAX has dragged on after two deadly crashes.

“Mr. Muilenburg is not entitled to – and did not receive – any severance or separation payments in connection with his retirement after more than 30 years with the company,” Boeing said in the filing.

Muilenburg, who worked at Boeing for 34 years, also forfeited $14.6 million in 2019 performance awards the company said.

However, Muilenburg will still receive pension, deferred compensation benefits and long-term incentive awards totaling $62.2 million, according to figures in the filing.

Muilenburg also holds options to purchase nearly 73,000 shares at around $76, well below Boeing’s current share price Friday of $329.92.

Boeing on December 23 announced Muilenburg’s exit, replacing him with ex-General Electric executive and longtime Boeing board member David Calhoun.

Boeing said the shakeup was needed “restore confidence” and “repair relationships with regulators, customers and all other stakeholders.”

Calhoun is scheduled to take over as CEO on Monday.

Calhoun will receive a base salary of $1.4 million and will be eligible for additional performance-based payments.

These include $7 million in long-term awards based on “continued employment and the achievement of several key business milestones, including full, safe return to service of the 737 MAX,” the filing said.

Airbus gaining

Meanwhile, Airbus said Friday it had delivered 863 planes in 2019, moving ahead of troubled Boeing for its best ever return, despite battling production problems which forced a mid-year downward revision of forecasts.

As Boeing, which had out-produced its European rivals since 2012, labors under the problems afflicting its 737 MAX model, Airbus raced ahead, revealing in a statement it had seen deliveries rise eight percent on 2018.

The US behemoth has yet to publish its own 2019 statement but had by November only made 345 deliveries to airlines – half its showing for the first 11 months of 2018.

With deliveries crucial for profitability, Airbus had initially targeted between 880 and 890 sales for 2019, but in October revised that down slightly to “around 860 commercial planes,” from 800 in 2018.

The slight fall-off came following production issues with the A321 ACF short to medium range maximum 240-seater launched last June. The issues centered on making the cabin configuration more flexible which proved more complex than foreseen compared to the earlier A320.

Airbus last year delivered 642 planes from its A320 family, including the A319neo, A320neo and A321neo, up from 626 in 2018.

A320 series, launched in 1987, has become the most-ordered series in commercial aviation history ahead of the Boeing 737, which appeared in 1967, industry experts say.

The company also welcomed an “exceptional” market reaction to the launch of its new A321 XLR long-range single aisle offering.

With its 2019 showing Airbus has now made more than 20,000 net deliveries in its 50-year history.

Boeing in contrast is struggling with the global grounding of its 387 unit-strong 737 MAX fleet since last March after two accidents in less than five months cost 346 lives and saw the company dial down production.

– AFP

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