Posted on: Tuesday, March 8, 2005
CEO ousted over 'poor judgment'
By Dave Carpenter
Associated Press
CHICAGO — Boeing Co. CEO Harry Stonecipher, brought back from retirement 15 months ago to boost the aerospace manufacturer's tainted image, has been forced out because of an ethics scandal involving an affair he had this year with a female company executive.
Associated Press library photo Chairman Lew Platt said the affair by itself did not violate the code of conduct at Boeing, where a string of defense scandals has raised questions about the way Boeing obtains its lucrative contracts. But an internal investigation that started because of an employee's complaint discovered "some issues of poor judgment" involving Stonecipher, who is married.
Platt refused repeated requests to be more specific and did not identify the female executive, who he said remains with Boeing.
"The board concluded that the facts reflected poorly on Harry's judgment and would impair his ability to lead the company," he said.
Attempts to reach Stonecipher for comment were unsuccessful. His telephone number is unlisted and Boeing spokesman John Dern said the company did not know his whereabouts.
Chief financial officer James Bell, 56, will serve as acting CEO until a successor is found but is not a candidate for the permanent job, the company said.
In an announcement that left the exact circumstances behind the ouster unclear, Boeing said yesterday the 68-year-old president and chief executive officer had resigned at the board's request a day earlier for improper behavior while carrying out the consensual relationship.
Harry Stonecipher, Boeing's chief executive officer and president, was forced to resign amid an ethics scandal involving an extra-
marital affair he had this year with a female company executive.
