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.