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U.S. fines Boeing $200 mil for misleading investors on 737 MAX safety

9 Comments
By John BIERS

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9 Comments
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Boeing got off easy. The design process was just horrible. How do you not have an overall risk management officer to coordinate how design changes would affect other systems?

With the max, there was nothing. The left hand didn't know the right hand was doing.

Forget the fact that the pilots didn't know about MCAS (Alternate acronym: May Crash Aircraft Spontaneously) - and that's bad enough - there were design engineers for other systems that MCAS would impact who didn't know about it.

Boeing stopped being a world-class engineering company and became a financial institution in pursuit of "sharholder value" when it moved its headquarters and put the accountants in charge. I call it the GM disease.

Billions in lost sales, compensation to families running into the hundreds of millions of dollars. A decades in the making reputation in tatters.

That decision seems "dubious" in retrospect.

Long-term shareholder value is a function of designing and building superior products that don't harm or kill their users.

Reputational risk management is a consistently undervalued aspect of corporate governance. its not just selfish image defense. There is real value to be had in asking "what if we blow this and a bunch of people die as a result of a bad decision?"

Value to the shareholders in value they don't lose (That's why its under-valued, but i digress), AND brand equity in the trust it engenders in the consumer mindset. That's something that delivers real value to the share holder.

Boeing really screwed the pooch on this one and a lot of innocent people died as a result. And it doesn't really matter much in the end, but shareholder value took a hit as well.

6 ( +6 / -0 )

Welcome to America. Kill as many as you like and we'll frown at you, but MISLEAD THE INVESTORS and we'll skin you alive...

4 ( +5 / -1 )

Boeing's former chief executive, Dennis Muilenburg, also agreed to pay $1 million to settle the same charges in the civil case.

Capitalism approved oligarchical murder for a nominal fee.

Boeing's ousted CEO departs with $62 million, even without severance pay

https://www.reuters.com/article/us-boeing-737-max-ceo-severance-idUSKBN1Z92DQ

4 ( +4 / -0 )

$200 million for 350 lives, sounds they got off easy.

Also don't forget they tried to blame 'poorly trained 3rd world country pilots' as the reason for the crashes initially.

America holds companies and executives accountable. Even the former CEO had to pay up big in a civil suit.

The CEO paid 1 million, not big at all, unless the lives of some people have lesser value than others!!!

Boeing's former chief executive, Dennis Muilenburg, also agreed to pay $1 million to settle the same charges in the civil case.

1 ( +1 / -0 )

As always, Investors come before the Families of those who were killed.

1 ( +1 / -0 )

William BjornsonToday 01:05 pm JST

Welcome to America. Kill as many as you like and we'll frown at you, but MISLEAD THE INVESTORS and we'll skin you alive...

America holds companies and executives accountable. Even the former CEO had to pay up big in a civil suit.

0 ( +2 / -2 )

America holds companies and executives accountable. Even the former CEO had to pay up big in a civil suit.

Charges were just settled, as dragon has said, for a nominal fee.

People died and the charges to hold them accountable vanished just like that

0 ( +1 / -1 )

And while we are at it, shame on the FAA.

It used to be the worl-wide gold standard on aviation safety. So much so that once it certified an aircraft, other organizations just accepted them for use in most cases.

And then came deregulation, budget and inspection cuts, and just taking Boeing’s word for it. The agency became a rubber-stamp.

THAT must change.

0 ( +0 / -0 )

What is the meaning of settlement? If they got off with nothing then I can understand the out cry of being let off easy. We just have to accept the agreement even though we know the amount of money paid out will never be worth or equal the total of lives lost

0 ( +0 / -0 )

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