Summary
Boeing Co. announced on November 24, 2003, the immediate dismissal of two senior executives, Executive Vice President and CFO Mike Sears and Vice President Darleen Druyun, for unethical conduct. The dismissals stem from circumstances surrounding Druyun's hiring, specifically Sears's communication with Druyun about future employment while she was a government official involved in matters concerning Boeing. Both executives are also accused of attempting to conceal their misconduct. This event underscores Boeing's commitment to ethical standards, with Chairman and CEO Phil Condit emphasizing swift action against violations. The company is enhancing its ethics programs and policies, including the creation of an Office of Internal Governance and a review by former Sen. Warren Rudman concerning hiring practices for former government employees. While Boeing asserts its financial condition remains excellent and unaffected by these actions, the company is cooperating with the Department of the Air Force's ongoing investigation and acknowledges the uncertainty regarding potential government actions against the individuals or the company.
Key Highlights
- 1Boeing dismissed Executive Vice President and CFO Mike Sears and Vice President Darleen Druyun for cause.
- 2The dismissals are related to Sears's improper communications with Druyun regarding future employment while she was a government official involved in Boeing matters.
- 3Both executives are accused of attempting to conceal their misconduct.
- 4Boeing is strengthening its ethics and governance programs, including a review of hiring practices for former government employees.
- 5The company stated that its financial condition remains excellent and is not impacted by these events.
- 6Boeing is cooperating with the Department of the Air Force's ongoing investigation.
- 7The potential consequences of the government investigation remain unpredictable.