Boeing says ousted CEO Muilenburg not entitled to severance payment

 Boeing says ousted CEO Muilenburg not entitled to severance payment

(Reuters) - Boeing Co's former chief executive officer, Dennis Muilenburg, is not entitled to and did not receive any severance or separation payments in connection with his departure, the U.S. planemaker said in a regulatory filing on Friday. (http://bit.ly/36GcTq4)

Muilenburg was fired from the job in December as the company failed to contain the fallout from a pair of fatal crashes that halted output of its bestselling 737 MAX jetliner and tarnished its reputation with airlines and regulators.

He was replaced by Boeing board chairman David Calhoun, 62, a turnaround veteran and former General Electric Co executive who has led several companies in crisis.

Based on Boeing securities filings from early 2019, Muilenburg was eligible for about $39 million (29.9 million pounds) in severance.

"Upon his departure, Dennis received the benefits to which he was contractually entitled and he did not receive any severance pay or a 2019 annual bonus," Boeing said in a statement.

The 737 MAX has been grounded since March. The deadly accidents in Indonesia and Ethiopia within five months killed 346 people.

Calhoun, who starts as CEO on Monday, will receive a base salary at an annual rate of $1.4 million, Boeing said.

(Reporting by Ankit Ajmera in Bengaluru, Tracy Rucinski in Chicago, Eric Johnson in Seattle and David Shepardson in Washington; Editing by Shounak Dasgupta and Matthew Lewis)

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Updated Date: Jan 11, 2020 04:07:57 IST