Former Boeing CEO Loses Bonus, Severance, But Walks Away With Over $30 million

Former Boeing Co. BA, -1.91% Chief Executive Dennis Muilenburg will not receive a bonus for 2019 or severance pay, although the executive, who resigned in December after more than 30 years at the company, has earned millions in retirement benefits and stock awards, including some valued at about $28.5 million as of Dec. 31, the company said in a filing Friday.

Muilenburg also holds stock options vested before he became CEO. In the same filing, Boeing said its board approved the compensation package for David Calhoun, who replaces Muilenburg as CEO on Monday.

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, including a bonus of about $7 million that hinges on the return to service of the 737 Max.

The jets were grounded in March after two deadly crashes connected to a faulty anti-stall system. Muilenburg left under a cloud of criticism for his handling of the ongoing crisis, which on Thursday included the revelation that Boeing employees mocked the design of the plane and bragged about fooling federal regulators on emails.

The 737 Max’s return to the skies has stretched for months, and Boeing halted the production of the planes, the latest iteration of the famed 737 aircraft, in December. On Friday, one of its suppliers said it would lay off thousands of employees while it awaits for production to resume.