Fired exec denies breach

CHICAGO — Boeing Co.’s ousted chief financial officer, Mike Sears, who was fired for what the company said was a breach of ethics, denied any misconduct and said he was "deeply disappointed" by the action.

Sears was dismissed Monday along with another senior executive for allegedly violating the company’s ethical standards at a time when Boeing was involved in trying to negotiate a multibillion-dollar tanker leasing deal with the Pentagon.

The 56-year-old Sears has declined to speak with reporters and did not return a telephone call to his suburban residence on Wednesday. But in a four-sentence statement issued through a law firm in Chicago on Tuesday, he said: "At no time did I engage in conduct which I believed to be in violation of any company policy.

"At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed that the company took the action it did yesterday. Because this matter is under investigation, I believe it is inappropriate to make any further comment at this time."

Boeing said it fired Sears after learning in an in-house inquiry that he had communicated with Darleen Druyun about a possible job with the aerospace giant at a time last year when she was working as a senior Air Force procurement official, and thus was in a position to influence Boeing contracts. Druyun, who joined the company’s missile-defense unit in January, also was fired.

The actions have raised new questions about the already controversial $17 billion tanker leasing deal that Boeing secured approval for in Washington this month.

Legal authorization for the deal was included in the defense budget signed by President Bush on Monday. But after the firings, Defense Secretary Donald Rumsfeld asked Pentagon attorneys to look into whether the contract signing should be delayed.

The Pentagon’s Office of the Inspector General already is investigating the deal, which U.S. Sen. John McCain, R-Ariz., and others have said smacks of cronyism.

Both Sears and Druyun were fired "for cause," meaning they get no severance pay, although Sears will get a sizable pension at age 65. Last year, Boeing paid him $1.11 million — a $746,000 salary plus a $364,000 bonus.

A day after his dismissal by Boeing, Sears also resigned as a director of Sprint Corp.

In addition, the publisher of his planned business management book, "Soaring Through Turbulence," said the book will no longer be published in March as scheduled "in light of recent events."

Boeing shares fell 8 cents to $38.18 in afternoon trading on the New York Stock Exchange.