Summary

  • Boeing’s board rejects proposal to move headquarters back to Seattle, citing potential impact on day-to-day management.
  • Shareholder Walter Ryan put forward the proposal, expressing lack of faith in current set-up and blaming decline on headquarters’ relocation.
  • Ryan believes relocating headquarters back to Seattle would improve focus, raise customer confidence, and boost Boeing’s share price.

Boeing’s board has rejected a shareholder attempt to move the manufacturer’s headquarters back to Seattle. The proposal was put forward at Boeing’s last annual general meeting (AGM) by Walter Ryan, who owns 10,000 shares in the manufacturer.

Boeing's headquarters in Virginia

However, according to The Seattle Times, Boeing’s board has since declined to put the proposal to a shareholder ballot at its upcoming AGM. Although a date has not yet been set for the next AGM, it is normally held at the end of April.

A ruling by the Securities and Exchange Commission (SEC) supported this decision, saying that the board is entitled to omit the proposal from its shareholder ballot and that forcing the relocation of its headquarters may impact the day-to-day management of the company.

40% fall in Boeing’s share price since 2019

Ryan reportedly bought his shares in Boeing in December 2019, just after the first 737 MAX crash in Indonesia. At the time, they were valued at $337, although they have since fallen to around $200. In the report from The Seattle Times, Ryan spoke about his lack of faith in the current set-up, saying,

“It’s a shame that they took a company that was a first-class operation and drove it into the ground.”

Alaska Airlines Boeing 737 MAX 9 departing PHX

Photo: Robin Guess | Shutterstock

He went on to say that the primary factor behind Boeing’s decline was “relocating Boeing’s headquarters from Seattle and separating executives from Boeing’s core commercial manufacturing business.”

Explaining the logic behind his proposal to bring Boeing’s headquarters back to Seattle, Ryan said that it would help the manufacturer focus on building high-quality aircraft, as it has done in the past. He added that this would raise customer confidence and, in turn, Boeing’s share price.

Boeing has faced a series of challenges in recent years. From the grounding of the 737 MAX to the pandemic, and more recently, to delivery delays for its 787 program and the Alaska Airlines 737 MAX 9 incident in January this year, all will have likely impacted the manufacturer’s share price.

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Boeing’s headquarters – a brief history

Boeing’s headquarters was located in Seattle until 2001 when it was moved to Chicago. The relocation was announced in May of that year, after a fierce battle between Chicago, Dallas, and Denver, each offering lucrative tax breaks to entice Boeing. The move was completed in September, just prior to 9/11.

In 2002, the headquarters was moved once again, this time to Arlington, Virginia. Despite its headquarters being located elsewhere, Boeing still designs and builds its aircraft in the Seattle area. The manufacturer also has a long history with the Pacific Northwestern city – it was founded there in 1916 by William E. Boeing.

Boeing 787 in production at Paine Field

Today, Boeing’s main assembly facility is located at Seattle Paine Field International Airport (PAE) in Everett, Washington. The site, which includes the largest building in the world by volume, was built in 1967 to produce the 747, and has since been extended and modified to build subsequent models, including the 777 and 787.

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What do you think of Walter Ryan’s proposal to move Boeing’s headquarters back to Seattle? Should the manufacturer have put it to a shareholder vote? Share your thoughts by commenting below.


  • 787-8 Dreamliner

    Boeing

    Stock Code:
    BA

    Date Founded:
    1916-07-15

    CEO:
    Dave Calhoun

    Headquarters Location:
    Chicago, USA

    Key Product Lines:
    Boeing 737, Boeing 747, Boeing 757, Boeing 767, Boeing 777, Boeing 787

    Business Type:
    Planemaker

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