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Glass Lewis recommends vote against two Spirit Aero directors
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Glass Lewis recommends vote against two Spirit Aero directors
Apr 4, 2024 12:37 PM

By Abhijith Ganapavaram

April 4 (Reuters) - Proxy advisory firm Glass Lewis has

recommended that Spirit AeroSystems ( SPR ) shareholders vote

against the election of two directors, including the head of the

aero parts supplier's risk committee, Ronald Kadish, at next

month's annual meeting.

Spirit and its biggest customer Boeing ( BA ) have come

under regulatory and investor scrutiny following a Jan. 5

mid-air cabin panel blowout on a Boeing 737 MAX 9 jet, the

fuselage for which was made by Spirit.

The Federal Aviation Administration said last month its 737

MAX production audit found multiple instances where both

companies allegedly failed to comply with manufacturing quality

control requirements.

"We believe that the investigations since the incident,

particularly the results of the FAA's audit, have indicated

questionable oversight and management of safety and related

risks by the company," Glass Lewis said in its report.

"Accordingly, we do not believe that the board, and in

particular the risk committee, has appropriately addressed

potential shareholder concern" regarding safety, legal and

regulatory risks, Glass Lewis said.

Spirit Aero spokesperson Joe Buccino said the company was

continuing with "multiple comprehensive and proactive efforts to

improve our safety and quality."

"Our goal is zero defects - perfection across all

operations," Buccino said in an emailed comment.

Kadish, 75, has been a director at Spirit since 2006.

He has held various government and corporate positions in

the aerospace and defense industry, including as director of the

U.S. Missile Defense Agency between 2002 and 2004 and executive

vice president at military contractor Booz Allen Hamilton

between 2005 and 2015.

Glass Lewis also advised shareholders to vote against the

election of Laura Wright, chair of Spirit's governance

committee, citing insufficient efforts at improving board

diversity.

Spirit's annual meeting is due on April 24. The company has

nominated 10 independent directors and CEO Patrick Shanahan to

serve on its board.

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