Feeds

Boeing sends flirtatious CEO packing

Stonecipher's Scarlet Letter

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Gone are the good old days when it took vodka-peeing ice sculptures, fake subsidiaries and government payoffs to get canned as a CEO. Now, all a top executive has to do is play a bit of tonsil hockey with an underling to be fired, as Boeing CEO Harry Stonecipher discovered today.

Boeing's board forced Stonecipher to tender his resignation, following an investigation into "a personal relationship" between the CEO and a female executive. Ironically, Stonecipher came out of retirement in 2003 to clean up Boeing's image. The company had been under pressure to distance itself from scandals revolving around a controversial bid for US Air Force refueling tankers, and Stonecipher was seen as the right man to do the distancing. CFO James Bell has been tapped as interim president and CEO.

“The resignation was in no way related to the company’s operational performance or financial condition, both of which remain strong," said Boeing Chairman Lew Platt. "However, the CEO must set the standard for unimpeachable professional and personal behavior, and the Board determined that this was the right and necessary decision under the circumstances."

Platt received word of Stonecipher's possible misconduct 10 days ago in the form of an anonymous message. A team of lawyers followed up on the matter and found that the "relationship was consensual and had no effect on the conduct of the company’s business."

Stonecipher - seen here just before the board turned on the engine - is married with two children.

The government is still looking into the influence Boeing's staff had in pushing federal contracts toward the company in exchange for perks.

Still, it's unclear what Stonecipher's bedroom activities have to do with Boeing's performance. If adultery was widely used as a legitimate cause for dismissal, the workforce would be small indeed. And that's not counting televangelists.

Shares of Boeing sit at $58.30 - just 44 cents below a 52-week high. Boeing insisted that "neither the career nor the compensation of the female executive was influenced by this relationship." So why the Puritan push? ®

Related stories

Fear and Loathing at HP say internal docs
Platt back at the top of Boeing
World trade body declares MS profits illegal

Internet Security Threat Report 2014

More from The Register

next story
BIG FAT Lies: Porky Pies about obesity
What really shortens lives? Reading this sort of crap in the papers
Be real, Apple: In-app goodie grab games AREN'T FREE – EU
Cupertino stands down after Euro legal threats
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.