Give me some context…Boeing CEO Dennis Muilenburg said, according to the new chairman of the company, that he won’t get most of his 2019 stock and bonus pay. This make up the overwhelming majority of his pay. In 2018, he received a total of $23.4 million, of which $20.4 million was in the form of stock & bonuses.
What is Boeing?
An American company that manufactures and sells airplanes to many airlines. In 2011 it started to develop more modern aircraft and created the Boeing 737-8 Max.
So? On 29 October 2018, a flight operated by the Indonesian airline, Lion Air, crashed shortly after taking off, killing 189 people. The plane was a Boeing 737-8 Max. On 10 March 2019, another 737-8 Max operated by Ethiopian Airlines crashed killing 157 people. They have been tied to a faulty safety system on the plane.
What is the outcome?
- The CEO’s pay cut is due to widespread criticism of the company. It seems he had no other option if he wanted to maintain his reputation.
- 47 airlines have suspended flights with Boeing 737-8 Max aircraft. Among the most important: Norwegian, Air China, Turkish Airlines, Qatar…
- Many countries have banned the Boeing 737-8 MAX from flying in their territory: China, Brasil, Colombia, 28 European countries, Canada, India, the U.S…
- Boeing has lost more than $20 billion on the stock exchange. It also has to pay to the airlines affected ($5 billion) and to the families of the victims.