It’s been a difficult couple of years for Boeing, the commercial aircraft manufacturer responsible for many of the jets you fly throughout your travels. After the company was forced to halt production of the 737 Max earlier this month, Boeing fired its CEO Dennis Mullenberg in time for the Christmas break.
Despite being fired, however, the suspended CEO could take home a hefty $ 39 million paycheck for his troubles. The move is criticized because the families of victims of the 737 Max crash will receive only a small fraction of it – about $ 144,000.
The company’s rocky year began in October 2018, when one of its 737 Max planes crashed shortly after taking off from Jakarta to the Java Sea. The crash killed all 189 people in the plane. Less later, in Ethiopia, another crash with a similar timeline killed all 157 people in the 737 Max.
At that point, the FAA suspected that the issue was with the Boeing aircraft rather than a pilot or airline error. In the next two weeks, every 737 Max in the world will land around the rest of the year. But because the plane was popular with airlines, Boeing was still producing jets while looking for a cause (and solution) for the fatal mistake.
When a solution could not be determined months after grounding, Boeing had to stop production on the 737 Max. Hundreds of jets remain owned by Boeing in Washington and Texas and are expected to be delivered to their respective owners around the world, but the company cannot deliver them until they find a solution to the error that caused the two fatal crashes.
The Victims Fund
Boeing fired its chief executive at the same time that he set up a $ 50 million fund for the victims to be split into each of the families of the victims of the aircraft that occurred in Indonesia and Ethiopia. The fund will meet their immediate needs, while another fund of the same amount will be made to meet other “family and community needs” according to the company.
Mullenberg, meanwhile, is set to receive about $ 39 million in isolation from the company following its launch earlier this week. Mullenberg has been accused of forcing the company to focus on profit, not security, in a move that has lost much of its relationship in recent months after a report published by the New York Times in April 2019 showed Boeing cutting the corners to keep up with demand.
The chairman of the company’s board of directors, David Calhoun, has been named the new chief executive officer.