Astute Bloomberg Reporter finds IMPORTANT Boeing Board policy
Future Members should include engineering, manufacturing, safety, risk management…
Step toward “Top Down” SMS & Safety Culture?
For the past two years plus, all aspects of the Boeing Company have been scrutinized under a microscope, more accurately a super electronic microscope. All sorts of unsolicited advice have come from a wide-ranging set of “experts”, including tweets from POTUS. Below is a Bloomberg article in which one of their reporters gleaned that the Seattle, no now Chicago, company has adopted a recommendation to split the functions of Board Chairman from the Chief Executive Officer’s office.
Julie Johnsson also reports that at the same time, the Board adopted a new statement of corporate governance principles. Contained in Boeing’s articulation of goals for Board representation is an IMPORTANT SAFETY PRIORITY declaration:
The 2020 addition: “,,,Boeing’s global activities, such as engineering, manufacturing, safety, risk management, software, operations, finance, marketing, international business and affairs, government, and public policy…”
The 2015 did not mention these critical attributes for Board membership:
A statement of corporate governance may seem insignificant (“who reads it”?) But the FAA guidance stresses the need for involvement of the Board and Senior Management
CONGRATLATIONS to the Boeing Board for COMMITTING to participation in SMS through all aspects of the company:
The statement is significant, but more importantly, the Board Members must become integral parts of the Boeing SMS & Safety Culture!!!
November 30, 2020, 7:28 PM EST Updated on November 30, 2020, 11:26 PM EST
Board’s leader must now come from the independent directors
Policy change wasn’t widely publicized after being adopted
Boeing Co.’s board quietly separated the chairman and chief executive officer roles earlier this year, after a majority of shareholders bucked management and supported a permanent split of those positions in a nonbinding vote at the company’s annual meeting.
Under the new policy, which is detailed in a statement on Boeing’s website but hasn’t been widely publicized, the board will elect a chairman from among the independent directors each year following the shareholder meeting. If that chairman leaves the board or joins the company’s executive ranks, a new leader will be picked from the remaining independent directors.
The board had resisted calls to require an independent chairman even after installing an outsider, Larry Kellner, in the role after a management shake-up late last year. Directors stripped Dennis Muilenburg of his chairman’s title in October 2019 before ousting him as CEO two months later for botching the response to two fatal crashes of the company’s 737 Max jet. The accidents killed 346 people.
The change in the board’s leadership structure was spelled out in a statement of corporate governance principles dated June 22. It came to light this month when shareholder activist John Chevedden, the author of the original proposal to require an independent chairman, submitted a follow-up measure to Boeing.
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