Boeing Pledges $100 Million To Crash Victims. Some Say That’s Not Going to Cut It.

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Following the crashes of two of its 737 Max jetliners and almost 400 deaths, Boeing has created a $100-million fund for the families of those affected, which CEO Dennis Mullenberg called “an initial outreach.” But critics are arguing this isn't enough, and deep structural change to Boeing's board is required to prevent further tragedies. Some Context: According to reports, roughly a dozen whistleblowers raised concerns about the 737 Max’s sensor problems before the crashes, including Boeing’s use of paper manual safety checklists. Recently, it was revealed that the piloting software was outsourced to $9 an hour engineers. Are shareholders upset? Shareholders filed a class-action suit against the company alleging that it knew about, and hid, Max 737 Max safety flaws from investors. Though 34% of shareholders recently voted to break up Mullenberg’s role as chair and board—so long-term strategy and day-to-day operations would be separated—it wasn’t enough to pass. Experience Necessary: So what should be done? For one, there have been calls for Boeing’s board to include more commercial aviation experts. In a letter to SEC head Jay Clayton, consumer advocate Ralph Nader (yes, that Ralph Nader) outlined how Boeing’s mishandling of the 737 Max’s flaws was a result of a corporate governance breakdown, and called for stakeholders, pilots and airline safety organizations to take a closer look at “the benefits independent board committees in the aviation industry to oversee safety issues.” You’re the puppet: Nader called Boeing’s board members “highly paid rubberstamping puppets” appointed for “their celebrity status and malleability.” No word on whether the SEC, which is currently investigating Boeing, will take Nader’s letter into consideration. -Michael Tedder Photo via Adobe

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