Boeing CEO Muilenburg’s Departure Wouldn’t Go Far Enough
If Muilenburg deserves to go, so does Greg Smith, the Chief Financial Officer and Executive Vice President, Enterprise Performance & Strategy and also...
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October 8, 2019 - by Scott Hamilton for airinsight.com
A recent call for Boeing CEO Dennis Muilenburg by my friend Ernie Arvai to resign or be removed has a litany of woes at the company that occurred under the CEO.
These mostly relate to the 737 MAX crisis, but also include the policy of returning free cash flow to shareholders rather than investing in new airplanes. Other issues are also cited.
Arvai makes many good points, but he doesn't go far enough.
If Muilenburg deserves to go, so does Greg Smith, the Chief Financial Officer and Executive Vice President, Enterprise Performance & Strategy.
The emphasis on cost control, which have become part of the focus of the MAX development, emanates from Smith. The strategy for new products ultimately falls under Smith, who vehemently opposes investment in the New Midmarket Airplane.
If these two deserve to go, so do the Board of Directors.
It's the Board of Directors who set the shareholders' value policy that Muilenburg carries out.
Long-serving board members
In particular, if Muilenburg goes and Smith goes, those long-serving Board members who were there at the beginning of the MAX program launch should be on the list to go.
This list includes lead director David...
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