Boeing fires CEO amid Max crisis
Muilenburg’s ouster came swiftly after string of bad news,
Boeing on Monday fired its chief executive, Dennis Muilenburg, whose handling of the company’s 737 Max crisis had angered lawmakers, airlines, regulators and victims’ families. The company has been mired in the worst crisis in its103-year history since the crashes of two 737 Max jets killed 346 people. The plane has been grounded since March and Boeing has faced cascading delays as it tries to return the Max to the air.
The company said David Calhoun, the chair, would replace Muilenburg on Jan. 13. Until then, Boeing’s chief financial officer, Greg Smith, will serve as interim chief executive effective immediately.
The Boeing board had stood by Muilenburg for months, but after a recent string of bad news for the company, his ouster came swiftly.
On Sunday morning, the Boeing board scheduled a call of its independent directors, which would exclude Muilenburg. It had been a disastrous week, including Boeing’s announcement that it would temporarily shut down the 737 Max factory and the botched launch of a Boeing space capsule designed for NASA.
The Sunday night call was not so unusual; as the Max crisis has dragged on, the board has often scheduled calls Sunday evening, often the only time the group could gather on short notice. The board — which includes Washington power players such as Nikki Haley, the former ambassador to the United Nations; and Caroline Kennedy, the former ambassador to
Japan; as well as several executives — was scattered around the country.
On the call, the board made the unanimous decision to remove Muilenburg. After the decision was made, Calhoun, who was in New York, and Larry Kellner, a board member who was elevated to chair of the company effective immediately, called Muilenburg to inform him of the decision, according to a person familiar with the situation. The call was brief, and Muilenburg accepted the board’s choice.
Muilenburg’s firing underscores the extent of the challenges facing Boeing. Before the 737 Max can fly again, regulators must approve Boeing’s fix for an automated system known as MCAS that had played a role in both crashes. The company still needs to provide the U.S. Federal Aviation Administration with all the documents needed to fully describe the software fix.