Boeing CEO grilled over safety concerns in US Senate hearing

NEWS WIRES

19 June 2024 at 12:01 am·2-min read

US senators on Tuesday attacked the CEO of Boeing BA.N for the planemaker's tarnished safety record, overshadowing his apology to families who lost loved ones in two 737 MAX crashes and acceptance of responsibility after a January mid-air emergency.

Chief Executive Dave Calhoun faced repeated questions about how much he is paid, Boeing's safety culture, and why he is not immediately resigning instead of retiring by year's end, at a hearing before the Senate Permanent Subcommittee on Investigations.

"I am proud of every action we have taken" Calhoun said in response to harsh questioning from Republican Senator Josh Hawley who asked, "why haven't you resigned?" and accused Calhoun of "strip-mining" Boeing while earning a multimillion-dollar pay package.

Calhoun's total compensation in 2023 rose to $32.8 million, a 45% increase from the $22.6 million he received the previous year.

The hearing marked the first time Calhoun had faced lawmakers' questions and put the spotlight on Boeing's souring safety reputation and the CEO who said in March that he plans to step down by year-end amid a management shakeup by Boeing.

Senator Richard Blumenthal, who chairs the subcommittee, called the proceeding a "moment of reckoning" for Boeing and told the hearing there was overwhelming evidence that the US Justice Department should pursue prosecution against Boeing.

"As a former federal prosecutor and state attorney general I think that the evidence is near-overwhelming to justify that prosecution," Blumenthal said.

McKenzie confirmed that the fasteners had been torqued from the wrong side, but said an initial analysis done by Boeing said they were safe.

(Reuters)

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