Former Boeing CEO Dennis Muilenburg Won't Get Severance Pay

(RTTNews) - Former Boeing Co. (BA) Chief Executive Dennis Muilenburg will not receive severance payments or a bonus for 2019. But, he has earned millions in retirement benefits and stock awards, including some valued at about $28.5 million as of December 31, the company disclosed in a regulatory filing.

Muilenburg, who spent more than 30 years at Boeing, was fired in December for the company's botched response to two crashes and failing to get the company's best-selling plane, the 737 Max jetliner back in the air.

Boeing has been reeling under the impact of the two crashes related to the 737 Max, Boeing's best-selling aircraft. The aircraft were grounded by airlines worldwide in mid-March this year following two deadly crashes within a short span of five months that killed a total of 346 people.

The company also disclosed in the regulatory filing that Muilenburg forfeited 11,266 RSUs, 10,398 performance-based restricted stock units or "PBRSUs", and 72,746 performance awards.

Based on the closing stock price on January 9, 2020, and assuming performance at target for the PBRSUs and performance awards, the forfeited awards would have been valued at about $14.6 million, while the vested long-term incentive awards would be valued at approximately $29.4 million.

Muilenburg also vested in certain stock unit awards earned prior to his service as President and Chief Executive Officer that, based on the closing stock price on January 9, 2020, are valued at about $4.3 million.

Boeing also disclosed in the filing that its board approved the compensation package for David Calhoun, who replaces Muilenburg as chief executive officer on January 13, 2020.

Calhoun, formerly Boeing's chairman, will receive a base salary of $1.4 million a year. Calhoun will also be eligible to receive annual bonuses and stock options.

Calhoun will be eligible to receive an additional long-term incentive award valued at about $7 million which will be earned only upon continued employment and the achievement of several key business milestones, including full safe return to service of the 737 MAX.

The company said its board approved the payment of an annual cash retainer of $250,000 to Lawrence Kellner, the company's non-executive Board Chairman. Kellner was elected to serve as Non-Executive Chairman effective December 22, 2019.