Aviation

Boeing’s new boss outlines primary focus, as former CEO denied severance payments

Christian Fleetwood

Christian Fleetwood

The Boeing Company’s new president and chief executive officer says his primary focus is getting the 737 MAX back to service.

In an email to employees, David Calhoun – who began his tenure at the helm of Boeing on Monday – said returning the jet to service and rebuilding trust are his initial priorities for 2020, among others.

“This must be our primary focus. This includes following the lead of our regulators and working with them to ensure they’re satisfied completely with the airplane and our work, so that we can continue to meet our customer commitments,” he said of the 737 MAX.

Boeing president and CEO David Calhoun

“We’ll get it done, and we’ll get it done right.”

Boeing’s best-selling model has been grounded globally since March following the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302, which killed a combined 346 people.

Calhoun replaces exiting president and CEO Dennis Muilenburg, who the board said resigned last month in a bid to restore confidence in the aircraft manufacturer.

“Many of our stakeholders are rightly disappointed in us, and it’s our job to repair these vital relationships,” Calhoun said.

“We’ll do so through a recommitment to transparency and by meeting and exceeding their expectations. We will listen, seek feedback, and respond — appropriately, urgently and respectfully.”

Calhoun enters the dual-role of president and CEO after more than a decade on Boeing’s board, and has been granted approximately $15.8 million ($US10.9 million) in annual target compensation.

Furthermore, Calhoun has also been granted two awards worth a combined $17 million, with one of them tied to operational milestones, such as a “full safe return to service of the 737 MAX,” according to a recent regulatory filing.

“I’m honored to lead the talented people of Boeing as we face our challenges,” he said.

“Working together, we will strengthen our safety culture, improve transparency and rebuild trust with our customers, regulators, suppliers and the flying public.

“With the strength of our team, I’m confident in the future of Boeing, including the 737 MAX.”

Meanwhile, former president and CEO Dennis Muilenburg will not receive severance or separation payments in connection to his “retirement” from the company, or a bonus for 2019.

According to Boeing’s recent regulatory filing, the forfeited awards would have been valued at approximately $21.14 million (US$14.6 million), while the vested long-term incentive awards would be valued at approximately $42.6 million (US$29.4 million).

This comes after Muilenburg’s exit from the company in December amid an ongoing battle to return the 737 MAX to service.

However, according to the regulatory filing, Boeing said he will receive distributions of pension and nonqualified deferred compensation benefits earned during his tenure.

These, including contributions made by Muilenburg, were valued at approximately $41.3 million (US$28.5 million) as of 31 December 2019, and vested in certain stock unit awards earned prior to his service as CEO.

Based on the closing stock price on 9 January 2020, these awards are valued at approximately $6.2 million (US$4.3 million).

Furthermore, Muilenburg also holds options to purchase “72,969 shares” of company common stock. These options, according to Boeing, have an exercise price of $75.97 and were vested in full in 2013, prior to Muilenburg’s service as president and CEO of the company.

To read more of Travel Weekly’s ongoing coverage of Boeing’s pursuit of a return to service for the 737 MAX, click here.

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Technology

Afterpay makes online travel play

If COVID-19 wasn’t already enough of a challenge for travel agents, a new OTA has entered the ring.

Share

CommentComments

Destinations

Tourism Malaysia’s new Aussie director on the destination’s big marketing shift

by Huntley Mitchell

The destination is placing much more of a focus on its digital presence and “smart partnerships”, as it looks to recover from the impacts of COVID-19.

Share

CommentComments

Aviation

How are high flyers dealing with coronavirus? A new jet-to-yacht service seems to be the answer

Are you or your clients keen to avoid cattle class (or any class for that matter) on your first post-coronavirus flight? Start saving your pennies for this new service.

Share

CommentComments

Tourism

STUDY: More than half of Aussies are keen to get travelling in the next six months

Find out where, when and how Aussies will hit the road once restrictions are lifted with this handy set of survey results.

Share

CommentComments

Travel Agents

Pandemic could push consumers to use agents over OTAs, says Barry Mayo

by Ali Coulton

The TravelManagers chairman has also predicted more bricks-and-mortar agents will make the switch to a home-based model, given the risk of further lockdowns.

Share

CommentComments

Destinations

Team behind Addicted to Maldives launches domestic-focused DMC

The new offering aims to help curate your clients’ domestic escapades so that you can give them their perfect post-lockdown getaway.

Share

CommentComments

Cruise

Cruise Wrap: CLIA offers training to non-members, more lines extend pause in operations + MORE

Travel Weekly staff dread Cruise Wrap days because they usually result in our deputy editor singing Enya’s “Orinoco Flow”, until we lock her in a cupboard.

Share

CommentComments

Aviation

Australian adult entertainer removed from flight over comments about George Floyd protests

This story has a bit of everything – an airline, an adult entertainer and even the ongoing George Floyd protests in the US.

Share

CommentComments

Road & Rail

Uber to offer ‘world-first’ car rental option Down Under

by Christian Fleetwood

You’d assume the bosses over at Avis, Budget, Hertz, Thrifty, and Europcar won’t be too pleased to read this news.

Share

CommentComments

Midweek Interview

Life in the time of COVID-19 with Club Med’s Marnie Blanchetier

We sat down with Club Med’s head of marketing and director of sales for a chat and a few episodes of The New Pope, until she began to give us spoilers.

Share

CommentComments

Aviation

REVEALED: The final two bidders for Virgin Australia

by Huntley Mitchell

Virgin Australia’s administrators have made a decision on which two bidders have made it through to the third and final round.

Share

CommentComments

Aviation

Virgin’s administrators still yet to name final two suitors following surprise bid

Virgin Australia’s administration process is starting to resemble Bathurst’s famous Mount Panorama racetrack, given the number of twists and turns.

Share

CommentComments