Boeing CEO David Calhoun faced intense scrutiny on Tuesday during his first appearance before the US Congress since a door blew out of a 737 Max during an Alaska Airlines flight earlier this year, raising serious questions about the aviation giant's safety practices and transparency.
One of the most pointed queries came from Missouri Senator Josh Hawley, who repeatedly pressed Calhoun about his substantial salary increase amid Boeing's tumultuous period marked by multiple incidents under his leadership. Calhoun's total compensation for 2023 surged to $32.8 million, marking a hefty 45 per cent rise from the $22.6 million he received the previous year.
Senator Hawley strongly criticized Calhoun, accusing him of prioritizing profit over transparency, passenger safety, and stringent quality checks. He alleged that the CEO's leadership was characterized by cost-cutting measures that compromised safety protocols, reduced job opportunities, and maximized corporate profits.
"You're slashing safety measures, exploiting your workforce, cutting jobs, and striving to maximize profits at the expense of Boeing... You're depleting Boeing... for the sake of profit, shareholder value, and you're being rewarded for it. You've received a massive salary hike, so it seems to be working out well for you," Hawley vehemently criticized David Calhoun.
Hawley highlighted ongoing investigations into Boeing's compliance with mandatory inspections for its 787 aircraft and allegations of employee record falsification. He emphasized the distress of Boeing employees and whistle-blowers who allegedly face threats and intimidation.
"Do you not think your priorities are misplaced here?" Hawley challenged Calhoun during the congressional hearing.
In response, Calhoun defended his tenure, expressing pride in his role and Boeing's safety track record while acknowledging the concerns raised. When pressed further on why he hadn't resigned, Calhoun asserted his commitment to the company and its employees.
"I'm committed to seeing this through. I take pride in assuming this responsibility. I stand by our safety record, and I deeply value our Boeing team," Calhoun responded, prompting further scepticism from Hawley.
Senator Richard Blumenthal, chairing the subcommittee, described the hearing as a critical moment for Boeing, stressing the urgency for the US Justice Department to pursue legal action against the company. He referred to findings by prosecutors regarding Boeing's failure to establish an effective compliance and ethics program following fatal crashes involving its 737 Max aircraft in 2018 and 2019.
Boeing's reputation has been severely tarnished by these incidents, which claimed the lives of 346 individuals collectively. Recent scrutiny intensified following the Alaska Airlines incident earlier this year, where an emergency landing was necessitated after an exit door detached mid-flight.
David Calhoun publicly apologized during the hearing, expressing regret to the families affected by the crashes in 2018 and 2019, and acknowledging that the Alaska Airlines incident resulted from a manufacturing defect.
"I apologize for the sorrow we have caused," Calhoun stated, despite facing interruptions and heckling from crash victims' families present at the hearing.
Families of crash victims have now urged federal authorities to impose a $24.8 billion penalty on Boeing and to swiftly pursue criminal charges that were deferred three years ago, as reported by The Associated Press.
