22:28:19 EDT Wed 08 May 2024
Enter Symbol
or Name
USA
CA



Boeing CDR (CAD Hedged)
Symbol BA
Shares Issued 450,000
Close 2024-03-28 C$ 33.88
Market Cap C$ 15,246,000
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Globe says cost-cutting fundamental to Boeing's woes

2024-04-01 08:25 ET - In the News

The Globe and Mail reports in its Saturday edition that the continuing crisis that led to this week's high-level house cleaning at Boeing is yet another example of a corporate board choosing a chief executive officer who knows more about cost-cutting than he does about a company's core business. The Globe's Gus Carlson writes that while the turfing of Boeing CEO Dave Calhoun was applauded by the company's shareholders and others, the underlying question remains: What did directors expect? Mr. Calhoun is a money guy, an accountant by education and training, not an engineer or aviation design expert. He was plucked from the asset management giant Blackstone to solve the aircraft maker's Max jet problems, which began in 2019 and have claimed almost 350 lives. Those problems got worse on his watch. Widespread outsourcing in the manufacturing process in the name of cost saving appears to have compromised quality and led to several recent incidents, including the now-infamous mid-flight door failure on an Alaska Airlines Boeing 737 Max 9 in January. What happened at Boeing is becoming an all-too-familiar story in the world of corporate governance and a cautionary tale for every company board and its stakeholders.

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