Boeing CEO gives up bonus over 737 Max crashes

Boeing CEO gives up bonus over 737 Max crashes
© Greg Nash

Boeing CEO Dennis Muilenburg will not accept his 2019 bonus following widespread backlash since two deadly crashes of his company’s 737 Max jets, the company’s new chairman told CNBC on Tuesday.

Boeing chairman David Calhoun said Muilenburg called him on Saturday morning “with the purpose of suggesting that he not take any compensation for 2019 in the form of bonuses, which of course is most of your compensation,” CNBC reports.

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Calhoun reportedly added, “It came in two fronts: one, no short- no long-term bonus and three, no consideration for equity grants until the Max in its entirety is back in the air and flying safely,” which Calhoun said could take until 2021.

The move comes after Muilenberg testified before Congress last week for the first time since the deadly crashes, apologizing to the victims’ families while being grilled by lawmakers over the incidents. Calhoun told CNBC the hearing changed Muilenberg, who was stripped of his chairmanship last month, “for life.”

During his testimony in front of the House Transportation Committee, Muilenburg admitted the company’s 737 Max planes had design issues and that there were employee concerns with the system ahead of the two plane crashes that killed a combined 346 people.

The CEO’s heated exchange with Rep. Steve Cohen (D-Tenn.) was a notable moment of the testimony, with the representative asking him if he was taking a pay cut until the plane’s issues were solved.

"Congressman, it's not about the money for me,” Muilenburg answered, saying the board would decide.