Boeing boots CEO

007-03-2005 | Reuters

[12B]

Reuters and Bloomberg reporting Stonecipgher out as CEO. Investigation says had relationship with female employee.

CFO James Bell to take temp control.

[12B]

13:03 07Mar2005 RTRS-BOEING CO SAYS HAS ASKED FOR AND RECEIVED THE RESIGNATION OF PRESIDENT AND CEO HARRY STONECIPHER 13:03 07Mar2005 RTRS-BOEING CO SAYS APPOINTED CFO JAMES BELL AS PRESIDENT AND CEO ON AN INTERIM BASIS 13:03 07Mar2005 RTRS-BOEING CO SAYS CHAIRMAN LEW PLATT ASSUMING EXPANDED ROLE IN CAPACITY AS NON-EXECUTIVE CHAIRMAN 13:09 07Mar2005 RTRS-BOEING SAYS STONECIPHER WILL ALSO LEAVE THE COMPANY'S BOARD 13:09 07Mar2005 RTRS-BOEING SAYS ALL CHANGES ARE EFFECTIVE IMMEDIATELY 13:09 07Mar2005 RTRS-BOEING SAYS BOARD ACTIONS TAKEN AFTER INVESTIGATION BY LEGAL COUNSEL 13:10 07Mar2005 RTRS-BOEING SAYS ACCELERATING SEARCH FOR A PERMANENT CEO 13:10 07Mar2005 RTRS-BOEING SAYS CANDIDATES BOTH INSIDE AND OUTSIDE THE COMPANY ARE BEING CONSIDERED 13:10 07Mar2005 RTRS-BOEING SAYS INVESTIGATION INTO PERSONAL RELATIONSHIP BETWEEN STONECIPHER AND FEMALE EXECUTIVE OF COMPANY 13:10 07Mar2005 RTRS-BOEING SAYS BELL IS NOT A CANDIDATE 13:10 07Mar2005 RTRS-BOEING SAYS BOARD DETERMINED THAT STONECIPHER'S ACTIONS WERE INCONSISTENT WITH ITS CODE OF CONDUCT 13:11 07Mar2005 RTRS-BOEING SAYS FEMALE EXECUTIVE DID NOT REPORT DIRECTLY TO STONECIPHER 13:11 07Mar2005 RTRS-BOEING SAYS RELATIONSHIP HAD NO EFFECT ON CONDUCT OF COMPANY'S BUSINESS 13:11 07Mar2005 RTRS-Boeing says asked for, received CEO's resignation 13:12 07Mar2005 RTRS-BOEING SAYS NEITHER CAREER NOR COMPENSATION OF FEMALE EXECUTIVE WAS INFLUENCED BY RELATIONSHIP NEW YORK, March 7 (Reuters) - Boeing Co. said on Monday that it asked for and received the resignation of President and Chief Executive Harry Stonecipher, adding that Chief Financial Officer James Bell would replace him on an interim basis. The company, which provided no explanation for the surprise move, also said Chairman Lew Platt would assume an expanded role at the top U.S. aircraft maker. ((Reporting by Christian Plumb; editing by John Wallace; Reuters Messaging: christian.plumb.reuters.com@reuters.net +1 646 223-6134)) ((Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com)) For Related News, Double Click on one of these codes: [U] [E] [ESL] [G] [PSC] [RNP] [DNP] [PGE] [PCO] [PCU] [AER] [US] [LEN] [RTRS] [MNGISS] [NEWS] [BA.N] For Relevant Price Information, Double Click on one of these codes: Monday, 07 March 2005 13:03:15RTRS [nWEN6528] {EN}ENDS

[12B]

Oops, sorry about bad format

[anniegetyourgun]

BIG news.

[12B]

Wonder if she was a wide body?

[eluminate]

I dont think they should have fired him if thats the issue. The relationship was consensual what I find wierd is that they expected him to disclouse it sort of no personal life at all.

[albee]

This guy gets booted out while Blowjob Billy Clinton gets applauded for doing the same thing.

Go figure!

[maestro]

Reuters and Bloomberg reporting Stonecipgher out as CEO. Investigation says had relationship with female employee.

This has NOTHING to do with 'rocket contracts' security.....move on.

[SC Swamp Fox]

Boeing says neither career nor compensation of female executive was influenced by relationship.

What's up with that?

[Hatteras]

I'm assuming this is taking place in the Seattle plant? I guess the other half of the dance team is keeping her job?

[Egon]

I dont think they should have fired him if thats the issue. The relationship was consensual what I find wierd is that they expected him to disclouse it sort of no personal life at all.

If there is a company policy in place, I would assume that it prohibits people in positions of authority or influence having "relationships" with people in a position to benefit from that relationship, or potentially being coerced into the relationship.

This is a good policy, and protects all parties involved, as well as the company, itself.

If the CEO of a company can't abide by the rules he either created or, at the very least, signed on to, the company has every right to can him. As it was consensual, I hope they'll be canning her as well.

[RedBloodedAmerican]

Holy smokes!

well, I don't know why their code says no relationships within the company, esp. if she doesn't report to him. Thats a screwy code.

My guess would be they were looking for a reason to excuse him.

[IamConservative]

Interoffice romance never works. It never creates shareholder value. In this case, there is clear risk of harassment suits. Harassment is about power. There is no arguing the CEO does not have power over every employee. There is also the loss of objectivity. As a stakeholder, you would not want Little Harry making decisions Big Harry should be making on your behalf.

If you have a position of authority in a publicly traded company, you represent both value and risk to that company with every action you make, 24x7, 365 days per year.

Every corporation I have worked for had a clear written policy on this and I have seen many asked to leave because of it. It is good business.

[RedBloodedAmerican]

That's not Stonecipher that you described.

[Tennessee_Bob]

Great - hope they'll look at my resume this time around!

[Incorrigible]

It's just about sex! Let the man get back to the job of making planes for the people's business.

[RedBloodedAmerican]

How's the Flight Attendant job coming?

;)

[vox_freedom]

We can't have it both ways folks. If BJ Clinton should have been impeached because of lying about an inappropriate office sexcapade then so should a CEO who ought to know better than to fish off the company dock. Office romances may be ok for lower than mid-level management, but are never in the best interests of a corporation -- and should be forbidden at the senior management level.
Phil Condit's relationship in Seattle also caused some scandal, though never reported by the cautious crowd at the Seattle Times & PI. In fact, that widely known "secret" may have precipitated the strong no-tolerance policy that exists today at the lazy B.

[eluminate]

in the real world things happen where they may company policy that intrudes on personal freedom is not effective. If they had their romance after working hours it is their right. The job shouldn't dictate to you what you do after you punch out after your 8 hour day. Realisticly speaking we have enough rules to abide by without having another set created for us at work.

[IamConservative]

"That's not Stonecipher that you described."

I was describing interoffice romances in general. I wasn't decribing this fellow. This fellow may be the most upstanding, moral citizen on the planet. Fact remains, he has made a decision in his personal life that will adversely effect share holder value.