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 ).