Two-timing chief exec sacked

Boeing boss flies into sex storm
Boeing has sacked its chief executive Harry Stonecipher after an inquiry into “a personal relationship” between him and a female co-worker.
The company said it had asked for and received his resignation on Sunday, describing his actions as “inconsistent with Boeing’s code of conduct”.

The US aerospace giant said that chief financial officer James Bell would replace him on an interim basis.

Mr Stonecipher, 68, had been appointed chief executive in December 2003.

His predecessor Phil Condit had resigned in 2003 in a move aimed at drawing a line under a number of business scandals.

Mr Stonecipher, a married-father-of-two, was formerly the head of McDonnell Douglas.

Boeing shares dropped 83 cents, or 1.4%, to $57.55, in morning trading in New York.

‘Reflects poorly’

In a statement Boeing said Mr Stonecipher’s relationship had been with an executive who “did not report directly to him”.

However, the board determined that he had breached the firm’s code of conduct.

“The board concluded the facts reflected poorly on Harry’s judgement and would impair his ability to lead the company,” said Lew Platt, Boeing’s chairman.

“The CEO must set the standard for unimpeachable professional and personal behaviour and the board determined this was the right and necessary decision under the circumstances.”

He had received anonymous information, which had also been sent to the firm’s “legal and ethics” leaders, 10 days ago.

“The investigation determined the relationship was consensual and had no effect on the conduct of the company’s business,” said Mr Platt.

‘Under a microscope’

On Friday, the US Air Force lifted a 20-month ban that prevented Boeing from bidding for its satellite-launching contracts.

Boeing was in July 2003 suspended from bidding after it was found to have illegally obtained documents from its rival Lockheed Martin.

Mr Stonecipher’s predecessor resigned as a result of the contracting scandals that led to two Boeing executives receiving jail terms.

Analysts said US corporate boards have been taking a more active role in dealing with employee behaviour in recent years.

“This speaks to indiscretions on the part of the CEO, which is inconsistent with where Boeing has to be,” said Joseph Battipaglia at Ryan, Beck & Co.

“Boeing has clearly been under a microscope so any variation whether vis a vis a government contract, or a third-party dealing or even a personal dealing would not be tolerated.”

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4325769.stm

Published: 2005/03/07 15:51:39 GMT

© BBC MMV

Interesting.
How many other companies would be brave enough to sack staff for having affairs within the work place?

Flood