Boeing CEO Dave Calhoun faces grilling at Senate hearing

Summary

In 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.