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Glass Lewis recommends investors vote against three Boeing directors, including CEO Calhoun
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Glass Lewis recommends investors vote against three Boeing directors, including CEO Calhoun
Apr 30, 2024 9:40 AM

By Abhijith Ganapavaram

April 30 (Reuters) - Proxy advisor Glass Lewis has

recommended shareholders vote against the reelection of three

directors to Boeing's ( BA ) board, including outgoing CEO Dave

Calhoun, citing dissatisfaction over the efforts to transform

the safety culture at the planemaker.

Boeing ( BA ) was not immediately available for a comment on the

influential advisor's recommendations.

Calhoun, who has been a Boeing ( BA ) director since 2009, has said

he will step down as CEO of the embattled planemaker at the end

of the year. Johri and Joyce serve as chairs of the Boeing ( BA )

board's audit and aerospace safety committees, respectively.

Boeing ( BA ) is facing heavy scrutiny from airlines, regulators

and lawmakers following a Jan. 5 accident when a door plug blew

off a brand new 737 MAX 9 jet. The incident has also led to the

regulator imposing a cap on production of the MAX jets.

In February this year, the head of the U.S. Federal Aviation

Administration gave Boeing ( BA ) 90 days to develop a comprehensive

plan to address "systemic quality-control issues" after an

all-day meeting with Calhoun.

"We believe that the board, and in particular the aerospace

safety and audit committees, has not appropriately addressed

potential shareholder concerns regarding safety, legal and

regulatory risks and could do more to mitigate the company's

reputational damage," Glass Lewis said.

The advisor recommended Boeing ( BA ) shareholders vote against the

reelection of the three directors "to strongly signal

dissatisfaction with the company's oversight of its safety

culture and its efforts to transform" it.

Johri has been an independent director at Boeing ( BA ) since 2020,

having previously served in various capacities at the erstwhile

United Technologies Corporation.

Joyce has been on the Boeing ( BA ) board as an independent

director since 2021. He was president and CEO of GE Aviation

from 2008 to 2020.

Glass Lewis also recommended Boeing ( BA ) shareholders vote to

approve top executives' 2023 compensation, under which CEO

Calhoun's pay package rose about 45% to nearly $33 million. The

vote, however, is not binding on Boeing ( BA ).

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