Press "Enter" to skip to content

Senators want to see exit of Boeing CEO, board says not yet

Last week, lawmakers questioned Muilenburg at Capitol Hill.  Lawmakers asked him that why he didn’t gave up his pay package even after two devastating crashes of Boeing’s 737 Max which claimed lives of more than 340 passengers. Last year the compensation of Muilenburg topped about $23 million.

While speaking straight to Muilenburg, Rep. Debbie Mucarsel-Powell stated that if he has integrity then he would step down right away. Rep. Jesus Garcia stated that since Muilenburg is the captain of the ship, he will be considered responsible for the two consecutive crashes.

Sen. Ted Cruz got dismayed after learning the fact that recently it came into notice of Muilenburg about exchange of instant message in which one of the former pilots of Boeing was stating that 737 Max’s simulator is troubling him.

The board of Boeing took back the chairmanship from Muilenburg in October but they unanimously showcased their confidence in him and let him be the CEO of the company. David Calhoun who is the executive of Blackstone Group and board member replaced him.

As per few analysts, if the company replaces Muilenburg in the midst of crisis then it would cause uncertainty and it is even possible that 737 Max won’t be able to fly ever again. Large numbers of investigations were about to take place on Boeing with regard to the development of the plane and regulators’ certification, this even includes a probe of Justice Department.

Since March global regulators have grounded Max which is the best-selling plane of Boeing and accounts for 40% of total profit made by the company. While making a statement during an exclusive interview Edward Jones stated that Muilenburg is the appropriate person as he can make changes which are apt so that Max can get ungrounded. Regardless of a couple of fiery hearing, the shares of Boeing ended 1.6% higher in comparison to broader market. Though there has been a lag in the shares’ boarder market but they were 7% higher when recorded on Friday.

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *