Boeing CEO Dave Calhoun faces grilling at Senate hearing
Summary
TLDRIn a heated exchange, a senator confronts the CEO of Boeing over his $32.8 million salary, a 45% increase, questioning the link between his compensation and the company's transparency and safety record. The senator highlights ongoing investigations, whistleblower allegations of safety and quality compromises, and the lack of profit or stock price growth under the CEO's tenure. The CEO defends his leadership, but the senator asserts that the company's focus on shareholder value has come at the expense of safety, quality, and worker well-being.
Takeaways
- 💼 The CEO of Boeing received a salary of 32.8 million dollars this year, a 45% increase from the previous year.
- 🔍 The company is under scrutiny for various issues including falsifying 787 inspection records, a criminal investigation related to an Alaska Airlines flight, and previous DOJ investigation for criminal conspiracy to defraud the FAA.
- 💬 The Senator questions the CEO's compensation in light of these transparency and safety issues.
- 🛫 There are allegations of safety compromises, such as using dish soap and a wet cheesecloth to lubricate and clean a door seal, and checking another with a hotel room key card.
- 🚫 The FAA has noted that Boeing has not fully implemented the recommended safety steps from 2019 and 2020 following the Max crash.
- 📉 Despite the CEO's high compensation, Boeing's stock price has not increased during his tenure, and there have been no stock buybacks or profit increases.
- 🔨 Whistleblowers have reported that Boeing is cutting corners on quality and safety, with fewer inspectors and safety inspections, and that raising concerns leads to retaliation and threats.
- 🏆 The CEO defends the company's actions and insists on their focus on safety and quality, despite the allegations and evidence presented.
- 🤝 The CEO expresses pride in Boeing's safety record and the actions taken, and does not see the company as the Senator described.
- 🤔 The Senator challenges the CEO's priorities, suggesting a focus on shareholder value at the expense of safety, quality, and worker well-being.
- 🙅♂️ The CEO is asked why he has not resigned given the issues, to which he responds that he is committed to the job and proud of Boeing's people.
Q & A
What is the annual compensation of the Boeing CEO mentioned in the transcript?
-The annual compensation of the Boeing CEO mentioned in the transcript is 32.8 million dollars.
What percentage increase in compensation does the CEO have compared to the previous year?
-The CEO has a 45% increase in compensation compared to the previous year.
What is the role of the CEO according to the transcript?
-According to the transcript, the CEO's role is to run the Boeing Company.
What issues are raised regarding transparency in the Boeing Company?
-Issues raised regarding transparency include the company being under investigation for falsifying 787 inspection records, under criminal investigation for the Alaska Airlines flight, and previously investigated by the DOJ for criminal conspiracy to defraud the FAA.
How does the CEO respond to the concerns about safety in the production process?
-The CEO responds by stating that the relationship with the subcontractor in question has been reviewed by the FAA and Boeing, and he is intent on acquiring the company to prevent such issues.
What steps has Boeing reportedly not implemented according to the FAA?
-Boeing has reportedly not implemented the recommended steps from 2019 and 2020 after the Max crash, which were related to safety procedures.
What is the CEO's stance on the allegations of cutting corners on quality and safety?
-The CEO denies the allegations, stating that they have increased the number of quality inspectors and that they have taken action on all issues raised by whistleblowers.
How has the Boeing stock price performed during the CEO's tenure?
-The transcript indicates that the Boeing stock price has not increased during the CEO's tenure.
What is the CEO's response to the lack of profit and stock price increase?
-The CEO does not provide a direct response to the lack of profit and stock price increase in the transcript.
What allegations have been made by whistleblowers according to the transcript?
-Whistleblowers have alleged that Boeing is cutting corners on quality and safety, eliminating safety inspections, retaliating against those who raise concerns, and threatening employees.
How does the CEO justify his high compensation despite the issues raised?
-The CEO justifies his compensation by stating that he is sticking through the challenges, is proud of the safety record, and is committed to the company and its people.
Outlines
💼 Executive Compensation and Accountability
The first paragraph of the video script features a heated exchange between a senator and the CEO of Boeing. The senator confronts the CEO about his substantial compensation of 32.8 million dollars, which is a 45% increase from the previous year, questioning the correlation between his pay and the company's performance. The senator highlights ongoing investigations into Boeing for falsifying records and safety issues, suggesting that the CEO's pay does not reflect the company's commitment to transparency, safety, or quality. The senator also raises concerns about whistleblower allegations of safety and quality corners being cut, and the lack of increase in stock price or profits during the CEO's tenure. The CEO defends his position, stating that he is focused on safety and quality, and that the company has increased the number of quality inspectors.
🛫 Boeing's Safety and Ethical Challenges
In the second paragraph, the senator continues to press the CEO on Boeing's safety and ethical challenges. The senator references specific incidents such as the 737 Max crashes and parts falling off aircraft, and criticizes the CEO for not recognizing the gravity of the situation. The senator also addresses the whistleblowers' testimonies about being ignored, retaliated against, and even threatened for raising concerns about safety and quality. The CEO maintains that he is proud of the company's safety record and the actions taken, but the senator expresses disbelief and challenges the CEO's pride in the company's current state, suggesting that the CEO's compensation is not aligned with the company's performance or the well-being of its employees and customers.
Mindmap
Keywords
💡Transparency
💡Compensation
💡Safety
💡Quality
💡Whistleblowers
💡Profit
💡Stock Price
💡Cutting Corners
💡Investigation
💡FAA
💡Strip Mining
Highlights
Senator questions CEO's $32.8 million compensation, a 45% increase from last year despite ongoing issues.
CEO admits being paid for transparency, but Boeing faces multiple investigations for falsifying records and safety violations.
Senator points out lack of transparency and safety, citing whistleblower allegations of Boeing cutting corners and retaliating against employees who raise concerns.
CEO defends company's safety record but Senator highlights two 737 Max crashes and other safety incidents during CEO's tenure.
Senator accuses CEO of prioritizing shareholder value and profit over safety, quality, and transparency.
CEO denies allegations of cutting safety procedures and eliminating quality inspections, despite whistleblower testimony.
Senator questions CEO's $33 million compensation package when Boeing's stock price and profits have not increased.
CEO admits not watching stock price and denies any stock buybacks during his tenure.
Senator criticizes CEO for not resigning despite the company's safety and quality issues under his leadership.
CEO insists he is proud of Boeing's safety record and the actions taken, despite Senator's concerns.
Senator challenges CEO's pride in the company, citing engineers' claims of being ignored, retaliated against, and threatened.
CEO denies recognizing the negative portrayal of Boeing, insisting the company operates differently.
Senator contrasts CEO's compensation with the company's performance and the risks faced by employees and whistleblowers.
Senator asks if CEO thinks his priorities are misplaced and if it's time to focus on quality, worker welfare, and the company's legacy.
CEO stands by his statements and assures Senator that the company does not operate in the way described by whistleblowers.
Senator expresses disbelief at CEO's response, highlighting the stark reality of the company's current state under his leadership.
CEO maintains his position and expresses pride in the job, despite the Senator's criticisms and concerns raised by whistleblowers.
Transcripts
what is it that that you get paid
currently Senator that's uh well
disclosed in in our proxy documents uh
in each of the years that I've been
employed yeah but what is it it's a big
number sir well let me help you out it's
32.8 million this year does that sound
right yes it does that's a 45% increase
over last year does that sound right yes
it does what is it you get paid to do
exactly I get paid to run the Boeing
Company yeah so just help me understand
that I mean do you get paid for
transparency is that is that part of is
that one of the metrics for your income
I think the board counts on me for
transparency really because you're under
investigation for falsifying 787
inspection records the Boeing's under
criminal investigation for the Alaska
Airlines flight you were investigated by
go by doj for criminal conspiracy to
defraud the FAA this is all in your
tenure this doesn't sound like a lot of
transparency to me
um what about uh safety is that a
component of your salary it sure is
Senator you know have you seen the
reports that the subcontractor that you
use to make that door piece that fell
out of the sky that when the FAA went
and toured the facility they found one
door seal being lubricated with Dawn
liquid dish soap and cleaned with a wet
cheesecloth and another was was being
checked with a hotel room key card does
that sound like safety to you Senator I
I think our relationship with that
particular supplier has been well
documented reviewed by the FAA and most
certainly us and I'm very intent on
acquiring that company so that none of
that ever happens you know the FAA also
says that Boeing still has not
implemented the recommended steps back
from 2019 and 2020 after the max crash
is you you you still have not taken the
appropriate safety procedures or
implemented what they recommended I mean
how if safety is a component of your $33
million compensation package I mean how
can you possibly qualify for any of this
what what about quality is quality part
of your compensation
package Senator I uh I meet with the
FAA pretty regularly uh they don't hold
anything back and I'm not aware of
anything that has been cited with
respect to those accidents that we
haven't uh taken action on really
because we've had whistleblowers you
said You' listen to whistleblower
testimony we've had multiple
whistleblowers come before this
committee and allege that Boeing is
cutting every possible corner on quality
and safety not just in the past but now
they've alleged that you've eliminated
safety inspections that there are fewer
in quality and there are fewer
inspectors doing quality inspections out
there they've alleged that when they
raised quality issues and concerns they
were reassigned they were retaliated
against they were physically threatened
that doesn't sound like attention to
Quality to me and yet you're getting
paid $33 million a year it's
extraordinary Senator I
I we have increased our quality
inspectors significantly how much has
your stock price increased while you've
been at Boeing it hasn't and I don't
watch it much have you done any stuck
BuyBacks while you've been at boing uh
not in my job no how about your profits
have your profits increased at all well
you haven't had any profits sir I'm
sorry I have not had any profits yeah
you know I I think the truth is Mr coun
you're not focused on safety you're not
focused on quality you're not focused on
transparency all of this is in the
record but I think actually you're
focused on exactly what you were hired
to do which is that you're cutting
Corners you are eliminating safety
procedures you are sing it to your
employees you are cutting back jobs
because you're trying to squeeze every
piece of profit you can out of this
country you're this company you're strip
mining it you're strip mining Boeing was
one of the greatest American companies
ever it has employed thousands of people
in my state and you are strip mining it
for profit shareholder value and you're
being rewarded for it you got a huge
raise a huge
increase so it's working out great for
you for the American people they're in
danger for your workers they're in Peril
for your whistleblowers they literally
fear for their lives but you're getting
compensated like never before don't you
think maybe your priorities are are
misplaced here I mean don't you think
maybe it's time to get back to focusing
on making quality ples and paying your
workers well and taking care of the
little guys who got you to where you
are that's not a rhetorical question
Senator uh I don't
recognize any of the Boe you described
really and I want to sure you don't
recognize the Boeing that has airplanes
falling out of the sky that has had two
Maxes crash that has had pieces of doors
fall out of the sky that have had
whistleblowers come before they've sat
right where you have sat and told us
these are your employees who have told
us that when they these are the
engineers by the way are you an engineer
I'm not yeah they are and they have said
that they're not listened to that
they're retaliated against that they're
threatened that's the reality of Boeing
today that's your company that you have
created now I don't recognize it either
from the company it used to be decades
ago but under your leadership that's
what Boeing is and you're being rewarded
for it handsomely handsomely don't you
think there's something wrong with
that why haven't you resigned yeah
Senator I uh I stand by what I said and
I want to assure the great employees in
in your state that um that is not the
way we operate the company and it never
will be if you would like my chief
engineer to talk about what he sees and
want to hear from you CU what I hear
from you is a lot of this team does that
and that team does that and I listen to
the whistleblowers but I don't meet with
them and I've heard about all this stuff
that you Congress have have medom asked
for because the public wants to see it
gosh darn him but you actually haven't
supervised any of it I've heard that
it's a lot of it's this it's that it's
this it's that but meanwhile you're
getting paid a heck of a lot of money
it's unbelievable if anybody's coming
out of this deal good it's you why
haven't you
resigned Senator I'm I'm sticking this
through I'm proud proud of having taken
the job I'm proud of our safety record
and I
am of our Boeing people you're proud of
this safety record I am proud of every
action we have taken every action you've
taken yes sir wow wow there's some news
for you
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