Harry Stonecipher, the chief executive fired by Boeing Co. for having an affair with another executive, will remain an employee of the company and receive an executive salary until he retires April 1.
Stonecipher, Boeing’s second CEO in 15 months, will be paid a salary at an annual rate of $1.5 million per year and receive an annual incentive of $2.1 million for 2004, the Chicago-based company said in a filing with the Securities and Exchange Commission.
Stonecipher will also continue to receive perks such as use of a company car and financial counseling until his retirement, although he will no longer be able to use the company’s aircraft unless approved by the non-executive chairman.
Stonecipher will continue to accrue pension benefits until his retirement date and after that, receive full retirement benefits.
In the filing, Boeing said that Stonecipher will forfeit a director option grant for 3,000 shares, and will not be eligible for a portion of the annual incentive award for 2005.
Chief Financial Officer James Bell succeeded Stonecipher on an interim basis as the company finds a permanent CEO.
Boeing’s board fired Stonecipher after learning that he had an affair with a female executive, which the company said broke company rules and damaged his ability to lead.
Stonecipher oversaw a revival in commercial jet orders as well as the adoption of the tough internal ethics code that eventually led to his own downfall.
Stonecipher, formerly head of McDonnell Douglas Corp., had been called out of retirement to replace Phil Condit, who quit in December 2003 after procurement scandals tarnished the Boeing company’s name.
The top U.S. aircraft maker hired a former Air Force official who was later sentenced to nine months in prison for steering government contracts to the company. The former CFO who helped hire her was later sentenced to four months in jail.
