Boeing CEO Dennis Muilenburg, 55, resigned effective immediately on Monday. His salary was $1.7 million. He has faced intense criticism for his handling of the 737 Max crisis.
The Max was grounded worldwide in March after the second of two crashes that killed a total of 346 people. Muilenburg has worked at Boeing in a number of different roles since 1985 and became CEO of the world's largest aerospace company in July 2015. After his resignation, chairman David Calhoun will take over as CEO, effective January 13, 2020. "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," the company said. Boeing said earlier this month that it would halt production of the 737 Max starting in January.
Boeing still has a strong balance sheet. "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 company declared. Calhoun said Monday he "strongly believes" in the future of Boeing and the 737 MAX. On Monday, the FAA said in a statement that it was informed of Muilenburg's departure from Boeing.