Ousted Boeing CEO Loses ’05 Bonus

Boeing Co. disclosed Thursday that Harry C. Stonecipher, who was forced out as chief executive over an improper relationship with a company executive, didn’t get any long-term incentives this year and would stop receiving employee benefits and perquisites when he retires.

Stonecipher will get a $2.1-million bonus for 2004, but he is ineligible for a prorated bonus for 2005, the aerospace company said in a Securities and Exchange Commission filing.

The 2004 bonus reflects strong company and individual performance last year, a Boeing spokeswoman said.

Chicago-based Boeing said Stonecipher would continue to receive pay under his $1.5-million yearly salary and accrue pension benefits until his official retirement April 1.

Boeing announced Monday that it asked Stonecipher to step down as president and chief executive after he admitted to having an extramarital affair with a female employee that the company said could be embarrassing.

The woman whom Stonecipher, 68, had the relationship with was identified by BusinessWeek as Debra Peabody, vice president of operations and commercial activities in Boeing’s Washington, D.C., office.

Stonecipher had come out of retirement in December 2003 to rebuild Boeing’s credibility after Phil Condit stepped down as chairman amid scandals involving Air Force contracts.

Chief Financial Officer James Bell, 56, has replaced Stonecipher on an interim basis while Boeing searches for a new CEO.

Shares of Boeing rose 23 cents to $57.98 on the New York Stock Exchange.