Why Boeing CEO Dennis Muilenberg Is Staying Put
In the past 13 months, the Boeing (NYSE: BA) 737 MAX has been involved in two fatal crashes, triggered in part by the model's poorly designed maneuvering characteristics augmentation system. As a result, the type has been grounded since mid-March. Meanwhile, investigations into the design and certification process for the 737 MAX have unearthed additional evidence of a deficient safety culture at Boeing.
Not surprisingly, this finding has led to a public outcry against the company and its CEO, Dennis Muilenberg. Many politicians have called for Muilenberg to step down and have accused him of putting profits -- and his own pay -- ahead of safety. Nevertheless, Muilenberg has no intention of resigning, and Boeing's board doesn't seem interested in making a change at the top, either. Let's look at why Boeing's embattled CEO is poised to remain in his position.
Last month, Boeing made some changes to its executive ranks for the first time since the 737 MAX safety crisis began. On Oct. 11, the company announced that it had separated the CEO and chairman roles, leaving Muilenberg as CEO but elevating David Calhoun to the chairman position.
Source Fool.com
