Summary
- Tough questions faced by Boeing CEO Calhoun at Senate hearing over safety record.
- Family members of crash victims demanded accountability and expressed outrage.
- Senators criticized management under Calhoun’s leadership, highlighting the decline of the company on his watch.
Boeing’s CEO David Calhoun had a tough day at the Senate hearing on Tuesday, facing questions about the company’s performance as well as angry comments from the family and friends of the victims of the two fatal 737 MAX crashes a few years ago.
Among the tough questions thrown at him were Boeing’s safety record under his leadership and his yearly compensation. Calhoun also admitted that the company retaliated against whistleblowers.
Outrage from crash victims’ families
Even before the hearing could start, Calhoun was met with angry family members and friends of the passengers who died in the two plane crashes of Lion Air and Ethiopian Airlines a few years ago. As Calhoun walked into the room, he was met with statements such as, “How do you sleep at night?” and “You killed our loved ones.” This, in a way, set the tone for what Calhoun was about to face from the Senate Permanent Subcommittee on Investigations.
He first turned around to the family of the crash victims and said,
“I want to personally apologize, on behalf of everyone at Boeing. We are deeply sorry for your losses. Nothing is more important than the safety of the people who step on board our airplanes. Every day we seek to honor the memory of those lost through a steadfast commitment to safety and quality.”
But it was cold comfort to those who lost their loved ones and demanded accountability from Boeing’s top boss. Despite the apology, they were not convinced that Boeing had done enough to address the safety culture at the company, with one attendee commenting, “You should be in jail.”
Tough questions asked
Boeing’s senate hearing on Tuesday managed to bring the Democratic and Republican senators together in their criticism of the company and the dwindling safety culture at its factories. Sen. Richard Blumenthal remarked,
“Mr. Calhoun, you were brought in turn this company around. But instead of asking what has caused Boeing’s safety culture to erode, you and your colleagues in the C-suite have deflected blame, looked the other way, and catered to your shareholders instead.”
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Calhoun also struggled to answer many of the questions thrown at him. For example, he failed to give a “precise number” when asked how much of Boeing’s total settlement amount following the two MAX crashes was covered by insurance.
When asked about the number of Boeing employees who had been fired for “retaliating against whistleblowers,” Calhoun said he didn’t “have that number on the tip of my tongue.” He also admitted that the company has, in fact, retaliated against whistleblowers.
Photo: Marco Menezes | Shutterstock
Sen. Josh Hawley went as far as to say that Calhoun was the problem with the company along with the management and accused him of pushing the blame onto the employees. He said,
“I don’t think the problem’s with the employees. I think the problem’s with you. You. It’s the c-suite. It’s the management. It’s what you’ve done to this company. That’s where the problem is.”
Things took an uncomfortable turn when Calhoun was grilled about his salary, to which he replied that it was “a big number.” Hawley clarified that Calhoun’s salary was $32.8 million, a 45% increase over the previous year, and asked him what he was paid to do. He then followed up with, “If anyone has come out of this deal good, it’s you.”
Who will rescue Boeing?
Among the criticisms Boeing has faced recently is its lack of bringing about a fresh perspective on handling the company. Blumenthal commented that Boeing’s management shuffle was akin to musical chairs, in which the same people were moved to different roles within their company.
Photo: BlueBarronPhoto | Shutterstock
Boeing has been busy looking for a new candidate to replace Calhoun once he steps down from the position later this year. But so far, nothing has materialized. Recently, GE Aerospace CEO Larry Culp also refused to accept the role of Boeing’s top boss as the company continues its search for a leader it hopes will pull it out of its current crisis.
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