Boeing Ousts CEO but General Counsel Installed in May Stays Put
The resignation of CEO Dennis Muilenburg marks the latest leadership shake-up at the troubled aircraft maker, which has reported $2 billion in losses from a crisis over its 737 Max jets.
December 23, 2019 at 03:16 PM
4 minute read
The continuing crisis over Boeing's 737 Max jets, which have been grounded in the wake of two crashes that killed a total of 346 people, led to the ouster of the Chicago-based aerospace firm's CEO on Monday. But the company's new general counsel is staying put, at least for now.
The resignation of CEO Dennis Muilenburg marks the latest leadership shake-up at the troubled aircraft maker, which reassigned its longtime top lawyer earlier this year. The firm reported $2 billion in losses in the third quarter of 2019 connected to issues with the 737 Max, not counting legal costs and settlements. The Wall Street Journal reported that the company estimates the MAX crisis will cost it $10 billion, but said analysts expect that figure to at least double.
In May, Boeing announced that general counsel J. Michael Luttig was stepping aside after 13 years as firm's top lawyer to serve in a new role. Brett Gerry was elevated from his role as the Tokyo-based president of Boeing Japan to serve as Luttig's successor.
At the time, Muilenburg described Gerry as a "proven and talented leader, with the right mix of legal, business and government experience we need to help us succeed."
Gerry continues to serve as Boeing's top lawyer, a spokesman for the company confirmed Monday. Gerry was unavailable for an interview.
After leaving the GC post, Luttig took on a newly created role as counsel and senior adviser to the CEO and the Boeing board of directors. He also continued to oversee legal matters related to the Oct. 29, 2018, Lion Air Flight 610 and the March 10 Ethiopian Airlines 302 crashes involving 737 Max jets. Boeing did not immediately respond to a request for comment regarding whether Luttig would remain in his latest roles following Muilenburg's departure.
Muilenburg's resignation as CEO and board director is effective immediately, according to a statement from Boeing. Boeing chief financial officer Greg Smith will serve as interim CEO while the board's chair, David Calhoun, transitions into the role.
"I strongly believe in the future of Boeing and the 737 Max," Calhoun said in a statement. "I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation."
Calhoun is slated to take over as CEO and president Jan. 13. He will remain on the board of directors, which "decided that a change in leadership was necessary to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders," Boeing stated in a news release.
"Under the company's new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers," the firm added.
Lawrence Kellner, who has stepped up to serve as non-executive chairman of the board after Muilenburg's departure, noted that Calhoun "has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront.
"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," he added.
The executive changes also came within hours after Boeing's first test flight Dec. 20 of an unmanned space capsule failed to reach the correct orbit, and was unable to dock with the international space station. The botched mission dealt a setback to a program intended to provide routine transportation for National Aeronautics and Space Administration crews to and from the space station.
Read more:
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllAfter DOJ Smackdowns Leave JetBlue Spiraling, Longtime GC Heads for Exit
FedEx General Counsel Cruising Into Retirement After 42 Years With Shipping Giant
Trending Stories
- 1Infant Formula Judge Sanctions Kirkland's Jim Hurst: 'Overtly Crossed the Lines'
- 2Abbott, Mead Johnson Win Defense Verdict Over Preemie Infant Formula
- 3Guarantees Are Back, Whether Law Firms Want to Talk About Them or Not
- 4Trump Files $10B Suit Against CBS in Amarillo Federal Court
- 5Preparing Your Law Firm for 2025: Smart Ways to Embrace AI & Other Technologies
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250