DealBook Briefing: Boeing Comes Under Government Scrutiny

Good Monday. (Want this by email? Sign up here.)

In the wake of two fatal crashes involving its 737 Max 8 airplane that shared similarities, Boeing finds itself with prosecutors and regulators inspecting its development processes and safety assessments.

• A grand jury in Washington, D.C., issued a subpoena dated March 11 — the day after the Ethiopian Airlines crash — seeking documents from at least one person involved in the development of the 737 Max jets, the WSJ reports.

• The Transportation Department inspector general’s office was also reportedly examining the plane’s design certification before the second deadly crash.

• An investigation by The Seattle Times found that the F.A.A. delegated wide responsibility for the 737 Max safety assessment to Boeing itself. The resulting analysis included “crucial flaws,” according to the investigation.

• “Most of these C.E.O.s received substantial raises — the median was 6.4 percent — even though the December stock-market swoon meant most of the companies finished out the year posting sluggish shareholder returns.”

• “Markets did pretty well, companies did well, and the economy held up,” Robin Ferracone, an executive-pay consultant, told the WSJ.

• But she also said that boards may have been thinking forward to an economic slowdown, adding, “They know they’re going to have to bring it down when the bloom’s off the rose.”


Source link Business

Leave a Reply

Your email address will not be published. Required fields are marked *