Boeing CEO out amid effort to 'restore confidence' in planemaker
Boeing CEO Dennis Muilenburg is out, resigning more than nine months in to the global grounding of the planemaker's bread-and-butter 737 MAX.
Mulienburg, whose resignation is effective immediately, will temporarily be succeeded by Boeing chief financial officer Greg Smith. The Chicago-based company's chairman David Calhoun will permanently replace Muilenburg as president and CEO on Jan. 13.
The leadership change -- just two days before Christmas -- is part of an effort by the Board of Directors to "restore confidence in the company," Boeing said in a statement Monday.
The New York Times is reporting he was fired, but the company press release calls it a resignation.
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"[Calhoun] has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront," said Lawrence Kellner, the newly appointed non-executive chairman of Boeing's board, in the statement. "The board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company."
Calhoun has been on Boeing's board since 2009, and became chairman in October. He has worked at private equity firm Blackstone, and previously led General Electric's aircraft engine business, according to The Wall Street Journal.
"David Calhoun is respected, and will provide a much better outside image for Boeing... That will provide the company with short-term stability," Teal Group aerospace analyst Richard Aboulafia told TPG.
Other analysts agree that Calhoun is a good choice to restore confidence in the planemaker. Cowen analyst Cai von Rumohr said in a report Monday that he is expected to focus on "closer coordination with all regulatory bodies and customers to rebuild confidence." In addition, he anticipates the new CEO will take a more cautious approach on forecasting the MAX's return to service.
Calhoun's tenure as CEO of Boeing may be short. While Aboulafia considers him a good choice now, he questions what Calhoun is the right man to lead the planemaker long term.
"Boeing isn't exactly lacking in [Calhoun's] financial management skills, and they're probably wrong for an engineering company that needs to restore its program management and new product development capabilities," said Aboulafia.
Related: Boeing to suspend 737 MAX production
Muilenburg, who took over the top spot at Boeing in 2015, has seen the planemaker's reputation take a beating following two fatal crashes of the 737 MAX that took the lives of 346 people in a five month period. The crashes were followed by the grounding of jet in March, which continues to this day -- with no clear timeline of when the plane will return to the skies.
American Airlines and Southwest Airlines have pulled the jets from their schedules through April, while United Airlines has pulled it through June citing a lack of clarity in the return-to-service timeline.
An engineer by training, Muilenburg was Boeing's president and chief operating officer with a reputation for cutting costs and pushing automation before taking the CEO job.
"He's an engineer," said former Boeing Commercial CEO Jim Albaugh on Muilenburg in an interview with The Wall Street Journal in 2015. "He likes to gather all the facts and data and to the extent that he can get a consensus he'll go for that."
Muilenburg inherited the MAX program only six months before the jet took its maiden flight in January 2016, and well into the certification process. While he did not oversee the development of the aircraft, he has received criticism for how he has handled the grounding.
This is a developing story and we will update it as more information becomes available.
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| 4X | Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year. |
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There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits.Pros
- 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
- 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
- Packed with credits foodies will enjoy
- Solid welcome bonus
Cons
- Not as useful for those living outside the U.S.
- Some may have trouble using Uber and other dining credits
- You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
- Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
- Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
- Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
- Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
- $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
- $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
- $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
- $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
- Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
- No Foreign Transaction Fees.
- Annual Fee is $325.
- Terms Apply.