Boeing board asked few questions about 737 Max safety
A Boeing 737 Max 8 airplane being built for India-based Jet Airways lands following a test flight last month at Boeing Field in Seattle.
A corporate board of directors serves on behalf of the shareholders, hiring and firing the chief executive, setting the pay of top executives and questioning whether their decisions are serving the company’s long-term interests. “They set up guardrails for the CEO,” said James Schrager, a management professor at University of Chicago’s Booth School of Business.
Boeing could have prevented a second tragedy if it had grounded the 737 Max after the first crash, said Tom Demetrio, a lawyer who is suing Boeing on behalf of the families of the Indonesia crash victims. “The Ethiopian aircraft should have never even been allowed to take off,” Demetrio said. “Boeing, not knowing why the Lion Air crash occurred, should have said, 'Everybody out there, stop flying these damn things.
“We should review our process, which we are,” Kellner said. “I think everyone should look back and say, ‘What can we do to strengthen this process?’” The current lineup of 13 directors includes Lynn Good, CEO of Duke Energy; Robert Bradway, CEO of biotech giant Amgen; and the former chiefs of Allstate, Medtronic, Aetna and Nortel. Caroline Kennedy, the former U.S. ambassador to Japan and daughter of John F. Kennedy, joined in 2017.
Boeing’s next leader, McNerney, became the first executive to start his tenure at the company with the three titles of president, chairman and CEO, giving him broad authority over decision-making. McNerney, a former GE executive with a wide network, recruited allies such as Calhoun, his former GE colleague, to the board.
“The board doesn’t have any tools to oversee [safety],” Biggs said. “The FAA doesn’t seem to be able to figure out what’s safe. So how do you expect the board members to be able to do that?” Boeing’s board was also counting on the company’s strong safety track record. Across all models of Boeing 737 planes, a fatal crash has happened 0.23 times in every million flights, according to data compiled by AirSafe.com.
Calhoun’s review concluded that the MCAS itself was working as intended, and had met the company’s criteria for safety when it was built. “The engineering disciplines that were deployed in the development and the implementation of the MCAS were sound and well-executed,” Calhoun said.
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