US senators criticize Boeing CEO over pay and safety record: ‘You’re strip-mining’
Boeing Chief Executive David Calhoun faced heavy questioning about the company’s safety culture and transparency as he appeared before the US Congress for the first time since the exit door of an Alaska Airlines flight blew off in January.
Boeing CEO David Calhoun faced tough questioning about the aviation giant’s safety culture and transparency on Tuesday during his first appearance before the US Congress. Exit door of 737 Max blown off during Alaska Airlines flight In January this year.
One of the toughest questions Calhoun faced was from Missouri Senator Josh Hawley, who repeatedly asked the CEO about his annual salary, which is set to increase by 45 percent from 2023, even as the aviation company was in a turmoil due to several incidents during his tenure.
Calhoun’s total compensation will rise to $32.8 million in 2023, a 45 percent increase from the $22.6 million he received last year.
Criticizing Boeing’s CEO, Hawley said Calhoun is only interested in “cutting corners” and squeezing every penny out of the aviation giant while paying no attention to the company’s transparency, passenger safety and quality checks.
“You’re eliminating safety procedures, you’re putting pressure on your workers, you’re cutting jobs, you’re trying to squeeze every possible profit out of this company … you’re breaking Boeing apart for profit, shareholder value, and you’re being rewarded for it. You’ve got huge raises, you’ve increased wages, so it’s working out very well for you,” Hawley attacked David Calhoun.
The US Congressman highlighted the various investigations currently underway at Boeing regarding the incidents, including whether the aviation giant completed the required inspections of its 787 aircraft and whether Boeing had conducted any investigations in this regard. The employees prepared incorrect records.
Hawley said that unlike the CEO, Boeing employees are suffering and that whistleblowers are “truly fearing for their lives.”
During the hearing, Hawley asked the Boeing CEO, “Don’t you think you have your priorities wrong here?”
Hawley also asked David Calhoun why he had not yet resigned.
“I’ll keep this job. I’m proud of this job. I’m proud of our safety record. And I’m very proud of our Boeing people,” the CEO responded, which Hawley couldn’t believe.
“I think it’s ridiculous that you’re still in your job,” Hawley said.
David Calhoun was appointed CEO of Boeing in January 2020, and the company announced in March that he would step down from the position by the end of 2024.
Senator Richard Blumenthal, who chairs the subcommittee, called it “a watershed moment” for the aviation giant and said at the hearing that there was enough evidence to suggest the US Justice Department should prosecute Boeing.
Prosecutors have until July 7 to notify a federal judge in Texas of their plans. In May, the Justice Department found that Boeing had “failed to design, implement and enforce a compliance and ethics program” as part of its compliance with a deferred prosecution agreement following the fatal crashes, Reuters reported.
Boeing’s reputation has been tarnished in recent years by two major 737 Max aircraft crashes, separate but similar incidents that killed 346 people.
In October 2018, a Lion Air flight crashed into the Java Sea 13 minutes after takeoff from Jakarta, the capital of Indonesia, killing all 189 people on board. A few months later, in October 2019, an Ethiopian Airlines flight crashed six minutes after takeoff from Addis Ababa, the capital of Ethiopia, killing all 157 people on board. Both incidents were linked to faulty flight control systems.
In the latest incident on Alaska Airlines, a plane carrying 174 passengers and six crew members had to make an emergency landing in Portland, US, after an exit door was blown off. Footage of the plane went viral on social media, showing the wall of the exit door in the rear middle cabin of the plane missing. This door was originally meant for evacuation purposes, but it was not activated on the Alaska Airlines plane and was permanently “plugged”.
Later, The New York Times reported that an extensive audit of Boeing 737 production by the Federal Aviation Administration (FAA) revealed worrisome issues, including mechanics using hotel key cards to assess the integrity of door seals and applying dish liquid soap to door seals “as a lubricant in the fit-up process.”
Boeing CEO apologizes
David Calhoun apologized to the families of the victims of the 2018 and 2019 plane crashes, and also acknowledged that the Alaska Airlines incident was the result of a manufacturing defect.
“I apologize for the pain we have caused,” he said as he was attacked by family members of the accident victims.
The Associated Press reports that some of the victims’ families are now calling on federal authorities to fine Boeing $24.8 billion and to swiftly prosecute the company under criminal charges that were dismissed three years ago.
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