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william
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Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 3:55 pm

Boeing's CEO gives an all encompassing interview with the Seattle Times. Kind of a back to basics type message.

https://www.seattletimes.com/business/b ... hallenges/

"Pulling Boeing out of the hole it has dug will take years, Calhoun said. He said he would focus on insulating engineers from business pressures and that he wasn’t done shaking up the company’s leadership. At a meeting with his senior leadership team Tuesday, Calhoun introduced a new set of values intended to guide the company, which he hopes will inspire employees still working on getting the 737 MAX back in service."
 
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keesje
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 4:23 pm

Saw it yesterday, a pretty blunt, un-PR department interview

“I’ll never be able to judge what motivated Dennis, whether it was a stock price that was going to continue to go up and up, or whether it was just beating the other guy to the next rate increase,” he said, adding later, “If anybody ran over the rainbow for the pot of gold on stock, it would have been him.”.


It might be required.. What also might be required, executive salaries based on something else than stock value. It sucked and nearly killed the company.
"Never mistake motion for action." Ernest Hemingway
 
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william
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 4:26 pm

keesje wrote:
Saw it yesterday, a pretty blunt, un-PR department interview

“I’ll never be able to judge what motivated Dennis, whether it was a stock price that was going to continue to go up and up, or whether it was just beating the other guy to the next rate increase,” he said, adding later, “If anybody ran over the rainbow for the pot of gold on stock, it would have been him.”.


It might be required.. What also might be required, executive salaries based on something else than stock value. It sucked and nearly killed the company.


Agreed, it was unusually blunt.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 4:40 pm

He mentioned nothing about empowering the engineers. Nothing will change.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 4:47 pm

SQ32 wrote:
He mentioned nothing about empowering the engineers. Nothing will change.


Engineers like Dennis?
"Never mistake motion for action." Ernest Hemingway
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 4:50 pm

This is a rerun of yesterday's NY Times article, already being discussed in the MAX thread.

Ref: viewtopic.php?p=22067931#p22066055

It's a shame ST didn't get to interview Calhoun, I bet they would have some interesting questions.
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 4:54 pm

SQ32 wrote:
He mentioned nothing about empowering the engineers. Nothing will change.


Actually yes he did

Pulling Boeing out of the hole it has dug will take years, Calhoun said. He said he would focus on insulating engineers from business pressures and that he wasn’t done shaking up the company’s leadership. At a meeting with his senior leadership team Tuesday, Calhoun introduced a new set of values intended to guide the company, which he hopes will inspire employees still working on getting the 737 MAX back in service.


Insulating engineers from business pressure sounds like he is empowering the engineers
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 5:05 pm

Nothing against Boeing but I can't help wondering if fixing the Boeing issues would take less time if McDonnell-Douglas was still around and making planes providing the additional competition to the market place.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 5:12 pm

Airbus and Boeing both need to be strong for the industry to work. If the new CEO is dead serious about letting the engineers engineer, we could be back to seeing Boeing and Airbus having to innovate instead of slapping new engines on everything!
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 5:27 pm

One cardinal sin of engineers is telling managers "I am expert. You know nothing".

I pity those MBAs, helicopter managers, having hard time making engineers to agree on cutting corners. Accountant Calhoun must have endured the despised glance from many of his expert engineers.

And being one of the leaders in Boeing during Denis time, he must have agreed on Denis share buyback, and nothing extra for R&D when Boeing is having liquidity trouble.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 6:15 pm

SQ32 wrote:
One cardinal sin of engineers is telling managers "I am expert. You know nothing".

I pity those MBAs, helicopter managers, having hard time making engineers to agree on cutting corners. Accountant Calhoun must have endured the despised glance from many of his expert engineers.

And being one of the leaders in Boeing during Denis time, he must have agreed on Denis share buyback, and nothing extra for R&D when Boeing is having liquidity trouble.


There was also a board of directors. I think this shows the reality of the market pressures when you have a global duopoly. The largest customers dictate what is built as much as A or B say, you can have it in flavor A or B, Version 1, 2, 3. The worst thing the new CEO could due is single out the Engineers/Accountants/MBAs - none of them should be lifted up or singled out, a well-run company would have them working cohesively together. The reality is all parties are needed to be successful. The statements are direct and blunt, as it must be, to show they are doing something distinctly different. The last thing the new team should do is decry accountants/MBAs/Middle managers, it would be playing the same game that supposedly got them in this mess, from a different direction.
 
S0Y
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 6:19 pm

Its one thing to blame your predecessor when you are an outsider, but to do so when you were part of the same leadership shows that nothing will change. Boeings culture is rotten and has been for a long time. It did not start with Mullinberg. They really needed fresh blood if there was to be any chance of redemption.

Declines such as this, take years to work out and even longer to unwind. I suspect leadership are still in denial
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 6:48 pm

Weatherwatcher1 wrote:
Actually yes he did
...
Insulating engineers from business pressure sounds like he is empowering the engineers

To use an old saying, I feel this is like diving into a pile of manure and finding a diamond. There's so many other toxic things he said. What follows is my comments from the 737 thread. I wish I could find a path to redemption in the one good thing Calhoun said, but I can't. His quotes lead me to believe that the man is disingenuous at best and morally corrupt at worse. This makes me feel his value as a leader next to nil, except perhaps in the eyes of his peers, the captains of industry, who presumably love his kind of swagger and willingness to throw others under the bus. Such leadership! The best case scenario is he does lead the company through getting MAX through RTS and 777X out the door, but Calhoun is not the right guy for the job if it's a wholesale redemption and the rebirth of an engineering oriented company you are looking for.

Interesting how he sits back as a former member of the BoD who blessed a lot of DM's decisions like boosting the production rates to pump up the stock and now he's throwing DM under the bus.

Calhoun is definitely pissing on DM's grave. I guess he feels confident that there's enough in DM's golden parachute to keep him from pushing back on such abuse. It's at best disingenuous and very cynical. I guess he feels immune to karma?

He says the board endorses the CEO till it doesn't, so he should watch his back.

He leans heavily on the three second rule and re-ignites the whole US vs non-US pilot sub thread:

But he implied that the pilots from Indonesia and Ethiopia, “where pilots don’t have anywhere near the experience that they have here in the U.S.,” were part of the problem, too.

Asked whether he believed American pilots would have been able to handle a malfunction of the software, Mr. Calhoun asked to speak off the record. The Times declined to do so.

“Forget it,” Mr. Calhoun then said. “You can guess the answer.”

That is of course the wrong attitude to have. You would think that recent FAA letter would have informed him on the struggles of US pilots doing standard emergency procedures. That whole take makes him come across as uninformed and bigoted and bound to piss off a large fraction of his customer base.

The only positive I could find in the interview was:

He said he would focus on insulating engineers from business pressures and that he wasn’t done shaking up the company’s leadership.

And some verbiage about changing the culture, working towards reasonable and achievable targets, being disciplined, hunting for bad news and dealing with it instead of burying it.

It's good he's calling out DM's focus on setting unrealistic targets to goose the stock price and good that he's implying he will get rid of others in the leadership that act the same way, but it's terrible that he's leaning in to the three second rule covering all sins and drawing a distinction between US and non-US pilots.
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ILikeTrains
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 7:27 pm

Woof, I wish Alan Mulally would come out of retirement now to save the day.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 8:25 pm

To those are saying his critique is muted because he was part of the leadership team under Dennis, as someone who has been on an executive team, they are not cohesive. For all we know he did object. Or maybe it was a culture he couldn’t object. Nonetheless I’d say his critique is very valid as he intimately knew his short comings and probably was just waiting for the day to say this.
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 8:33 pm

S0Y wrote:
Its one thing to blame your predecessor when you are an outsider, but to do so when you were part of the same leadership shows that nothing will change. Boeings culture is rotten and has been for a long time. It did not start with Mullinberg. They really needed fresh blood if there was to be any chance of redemption.


Excellent point, not to be overlooked. Calhoun is the leadership that supported DM's decisions.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 8:47 pm

keesje wrote:
Saw it yesterday, a pretty blunt, un-PR department interview

“I’ll never be able to judge what motivated Dennis, whether it was a stock price that was going to continue to go up and up, or whether it was just beating the other guy to the next rate increase,” he said, adding later, “If anybody ran over the rainbow for the pot of gold on stock, it would have been him.”.


It might be required.. What also might be required, executive salaries based on something else than stock value. It sucked and nearly killed the company.


This is the biggest BS statement ever! He is the REASON that this happened! The board creates the compensation. Tone-deaf GE Jack Welch leadership at play again.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 9:16 pm

Revelation wrote:

The only positive I could find in the interview was:

He said he would focus on insulating engineers from business pressures and that he wasn’t done shaking up the company’s leadership.



It isn't possible to insulate engineering from "business pressures". The entire manufacturing process starts with engineering.
If the engineering is late, everything downstream starts late, too (planning, supply chain, etc).

And, throughout the build process, engineering is involved. Drawing changes, non-conformance issues, etc. There's no way to insulate engineering from schedule pressures.

The goal should be engineering excellence, done on-time. That comes with a lot of pressure.

Management needs to focus on having the staffing and resources available for the entire manufacturing process to support scheduling milestones.

Meeting schedules is very important, but the priority must be doing the task correctly. Everything, including schedules, comes second.
Management is responsible to make sure that is the message sent, and that the team understands the message.
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 9:39 pm

Boeing1978 wrote:
Meeting schedules is very important, but the priority must be doing the task correctly. Everything, including schedules, comes second.

And the way management pressurizes engineers is to not support engineers trying to do the task correctly, pushing back on engineers who ask for extra testing, or extra equipment because these things cost money. Of course they do!

Management prefers to be able to show their bosses they are hitting schedules and budgets are often willing to sacrifice quality to get there, because managers on the way up will move on to some other position before their lapses become known. Often they find someone like Forkner or the the unnamed "three second guy" as a scapegoat to hide countless sins.

The message dump to Congress contained a quote, “I still haven’t been forgiven by God for the covering up I did last year". What drives someone to get to that point of moral discomfort? It isn't because they want to cut corners, such a person would not bother feeling guilt. It's because they're trying not to cut corners, but are being forced to.
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 10:09 pm

virage wrote:
S0Y wrote:
Its one thing to blame your predecessor when you are an outsider, but to do so when you were part of the same leadership shows that nothing will change. Boeings culture is rotten and has been for a long time. It did not start with Mullinberg. They really needed fresh blood if there was to be any chance of redemption.


Excellent point, not to be overlooked. Calhoun is the leadership that supported DM's decisions.


AMEN. Calhoun in the same GE sourced management herpes sore as Muilenberg and McInerny.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 10:13 pm

phlswaflyer wrote:
keesje wrote:
Saw it yesterday, a pretty blunt, un-PR department interview

“I’ll never be able to judge what motivated Dennis, whether it was a stock price that was going to continue to go up and up, or whether it was just beating the other guy to the next rate increase,” he said, adding later, “If anybody ran over the rainbow for the pot of gold on stock, it would have been him.”.


It might be required.. What also might be required, executive salaries based on something else than stock value. It sucked and nearly killed the company.


This is the biggest BS statement ever! He is the REASON that this happened! The board creates the compensation. Tone-deaf GE Jack Welch leadership at play again.

Either he was a maverick on the Board, so action and words will merge, or he has amnesia, there will be no Board purge, and the words will remain just..... words.

Does seem more interested in throwing his predecessor under the nose wheel, rather than a paradigm change in culture and focus, but lets give him a few more months.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 10:31 pm

Massively hypocritical to continue to throw the former CEO under the bus when he was part of the team that oversaw the CEO.

Further evidence in my view that DM should still be the CEO instead.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 10:44 pm

If you read the article, Calhoun tackles the "you were on the board during all of this" issue.

"Calhoun and the rest of Boeing’s board never seriously questioned that strategy, in part because before the first MAX crash off the coast of Indonesia in October 2018, the company was enjoying its best run in years. What’s more, the board believed that Muilenburg, an engineer who had been at Boeing for his entire career, was so deeply informed about the business that he was a good judge of the risks involved in ramping up production.

“If we were complacent in any way, maybe, maybe not, I don’t know,” Calhoun said. “We supported a CEO who was willing and whose history would suggest that he might be really good at taking a few more risks.”"
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 10:53 pm

Good. Boeing has a proud heritage. But its management was like a toilet that had been backing up for 25-30 years, and the plumbers who tried to fix it had died. Eventually, it was a clogged toilet they were proud of. They reveled in its filth. Denouncing the highly personal, damning flaws of prior management is warranted and is a step toward legitimacy. I hope he will aid the FBI in any criminal investigations.
 
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 10:57 pm

MSPNWA wrote:
Massively hypocritical to continue to throw the former CEO under the bus when he was part of the team that oversaw the CEO.

Further evidence in my view that DM should still be the CEO instead.


Muilenburg was paid $62 million to go away. He couldn't care less if he takes the blame for everything. SOP in large corporations.

As for him still being CEO? I think his position was untenable, he had to go. :yes:
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Re: Boeing’s new CEO confronts its challenges

Fri Mar 06, 2020 11:53 pm

william wrote:
If you read the article, Calhoun tackles the "you were on the board during all of this" issue.

"Calhoun and the rest of Boeing’s board never seriously questioned that strategy, in part because before the first MAX crash off the coast of Indonesia in October 2018, the company was enjoying its best run in years. What’s more, the board believed that Muilenburg, an engineer who had been at Boeing for his entire career, was so deeply informed about the business that he was a good judge of the risks involved in ramping up production.

“If we were complacent in any way, maybe, maybe not, I don’t know,” Calhoun said. “We supported a CEO who was willing and whose history would suggest that he might be really good at taking a few more risks.”"

No, he blustered his way through the question, like he did for the rest of the questions.

It's the board's job to question strategy and to not just believe the CEO.

At the same time Calhoun was on the board, he says he knew he would get DM's job if DM failed.

It seems like an almighty conflict of interest to me.

On top of that he convinces his chums on the board to give him a big bonus as a part of his CEO package.

All this paints a pretty ugly picture, IMO.
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 1:52 am

KarlB737 wrote:
Nothing against Boeing but I can't help wondering if fixing the Boeing issues would take less time if McDonnell-Douglas was still around and making planes providing the additional competition to the market place.

I doubt it. Lockheed Martin is around and they're not building commercial Jets anymore, so what's your point? Boeing did what Boeing did! And ? It was more than likely motivated by Greed and Arrogance. The Question is? Is he willing to give engineering the final Say? Or Not??
 
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 2:01 am

keesje wrote:
It might be required.. What also might be required, executive salaries based on something else than stock value. It sucked and nearly killed the company.

So you do believe that Boeing will survive the MAX crisis....hmmmm....some of your writings raise some doubt on that...
 
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 2:08 am

SuseJ772 wrote:
To those are saying his critique is muted because he was part of the leadership team under Dennis, as someone who has been on an executive team, they are not cohesive. For all we know he did object. Or maybe it was a culture he couldn’t object. Nonetheless I’d say his critique is very valid as he intimately knew his short comings and probably was just waiting for the day to say this.

So as a board member he could do nothing or say nothing or just go along with the crowd, but now that he is a lower level employee he is free to say and do anything he wants to do?
Hmmm.....
 
S0Y
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 2:10 am

scbriml wrote:

Muilenburg was paid $62 million to go away. He couldn't care less if he takes the blame for everything. SOP in large corporations.

As for him still being CEO? I think his position was untenable, he had to go. :yes:


Agreed DM had to go, his position was untenable........but there are a lot more that needed to go also, starting with the BoD, including Calhoun.
Accepting there is a problem (rotten mgmt culture) is the first step. We are not there yet.

A complete change in philosophy and culture is whats needed, and that will require someone external who is untainted by the leadership that allowed this to develop over the past 20yrs
 
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 4:10 am

How much aerospace and engineering this Neutron Jack protege accountant Calhoun knows for meriting the position of CEO in Boeing?

I suggest Calhoun double down on rank and yank and see if Boeing can be great again (cynical). But dont forget to rig the books as Neutron did earlier, else rank and yank wont work.
 
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 7:50 am

It is great to see that finally all posters that said that DM "resigned" now agree that he was fired.
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 12:48 pm

Boeing believes it can prosper by "not being great in engineer", diametrically opposite to her earlier aspirations.

Bill Allen, Boeing’s chief executive from 1945 to 1968, said that the spirit at the company at that time was to “eat, breathe, and sleep the world of aeronautics.”

The culture shift continued under Condit’s immediate successor as Boeing CEO, Harry Stonecipher, and his successor, James McNerny. Stonecipher is quoted in a 2019 article in The Atlantic as saying “When people say I changed the culture of Boeing, that was the intent, so that it’s run like a business rather than a great engineering firm.”

In addition, Boeing’s board includes a single aerospace engineer or former commercial or military pilot.

Boeing goes down cesspool with all her GE and MD executives and MBAs. Today nothing change, yet another Neutron Jack man ascend CEO. I see future of Boeing as utterly hopeless.
 
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 2:01 pm

The interview left a lot to be desired. Imho Calhoun will be gone with 12 months after the MAX is back in service.
 
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 2:07 pm

He seems to make all the right noises, but the give away is still blaming less-trained pilots. At least on a couple of interviews he said less trained pilots made the MCAS fix a necessity.

That is in line with talking points from the onset of this fiasco and less noble.
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 2:26 pm

dtw2hyd wrote:
He seems to make all the right noises, but the give away is still blaming less-trained pilots. At least on a couple of interviews he said less trained pilots made the MCAS fix a necessity.

That is in line with talking points from the onset of this fiasco and less noble.


But then the more-trained, more-experienced pilots also struggled with MAX procedures despite receiving additional training for a sim session where they pretty much knew exactly what they were going to face. :scratchchin:
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 2:32 pm

par13del wrote:
SuseJ772 wrote:
To those are saying his critique is muted because he was part of the leadership team under Dennis, as someone who has been on an executive team, they are not cohesive. For all we know he did object. Or maybe it was a culture he couldn’t object. Nonetheless I’d say his critique is very valid as he intimately knew his short comings and probably was just waiting for the day to say this.

So as a board member he could do nothing or say nothing or just go along with the crowd, but now that he is a lower level employee he is free to say and do anything he wants to do?
Hmmm.....

I was unaware he was a board member before, but as someone who has sat on board calls for publicly traded companies, I will say all the more there is often dissent within that. That actually explains to me MORE now how a) he got the position and b) his blunt comments. He’s probably been speaking up for a while internally. He was probably the anti-Dennis. This when it came time to make a point, they put in Anti-Dennis.

At this level there is often dissent. And lots of it. But the point is, you voice your dissent, argue passionately, but then you leave the room united publicly (or you leave the board). It doesn’t mean your agree and won’t continue to dissent privately.

And one of the reasons you stay is because of a situation like this. You don’t want the whole board (even if it clearly was the majority before) to be all “pro-Dennis”
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keesje
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 2:50 pm

Calhoun confirms stock price wasn't only determining salary, but also policy. It drove the investment / accounting strategy too. And everyone was happy to cash / cheer on the sidelines. Critics were pointed at stock value & free cash flow and laughed away. https://verovenia.wordpress.com/2017/07/26/more-cash/

While company was sucked out of talent, realism, portfolio and after 787 management felt they could get away with anything. Trump & FAA in the pocket, because jobs & exports. https://www.fool.com/amp/investing/2019 ... -2019.aspx
"Never mistake motion for action." Ernest Hemingway
 
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Revelation
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 3:03 pm

SQ32 wrote:
Boeing believes it can prosper by "not being great in engineer", diametrically opposite to her earlier aspirations.

Bill Allen, Boeing’s chief executive from 1945 to 1968, said that the spirit at the company at that time was to “eat, breathe, and sleep the world of aeronautics.”

The culture shift continued under Condit’s immediate successor as Boeing CEO, Harry Stonecipher, and his successor, James McNerny. Stonecipher is quoted in a 2019 article in The Atlantic as saying “When people say I changed the culture of Boeing, that was the intent, so that it’s run like a business rather than a great engineering firm.”

In addition, Boeing’s board includes a single aerospace engineer or former commercial or military pilot.

Boeing goes down cesspool with all her GE and MD executives and MBAs. Today nothing change, yet another Neutron Jack man ascend CEO. I see future of Boeing as utterly hopeless.

All good, but keep in mind DM is a pilot and an engineer, and he's now seen as the poster boy of goosing the stock price.

seahawk wrote:
The interview left a lot to be desired. Imho Calhoun will be gone with 12 months after the MAX is back in service.

Apparently Calhoun is now "embarrassed and regretful" about the interview, according to tweets by the NYT reporter:

David Gelles @dgelles 13h
JUST NOW: Boeing CEO Dave Calhoun emailed senior leaders at the company for remarks he made our interview from yesterday.

“I am both embarrassed and regretful about the article."

David Gelles @dgelles 13h

More from email:
"Regarding Dennis, he is a friend, and I was personally invested in his success — and still am. Suffice to say, leading during a crisis is as tough a test as there is for even the most experienced CEO. Now is not the time to look behind us. I regret doing it."

David Gelles @dgelles 13h

Mr. Calhoun said in the email that he did the interview "in the interest of demonstrating transparency and straight talk about our leadership point of view and current situation. I have said that transparency is a messy process but worth it in the end, and I still believe it."

Ref: https://twitter.com/RichCimini/status/1 ... 6559915008

At least he realizes he threw Dennis under the bus, and is admitting he made a rookie mistake, but what he said was IMO pretty much unforgivable.
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Revelation
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 3:15 pm

keesje wrote:
Calhoun confirms stock price wasn't only determining salary, but also policy. It drove the investment / accounting strategy too. And everyone was happy to cash / cheer on the sidelines. Critics were pointed at stock value & free cash flow and laughed away. https://verovenia.wordpress.com/2017/07/26/more-cash/

While company was sucked out of talent, realism, portfolio and after 787 management felt they could get away with anything. Trump & FAA in the pocket, because jobs & exports. https://www.fool.com/amp/investing/2019 ... -2019.aspx

I'd wait till we see actual evidence of change instead of just one now regretted interview before doing victory laps.

Note that Calhoun is still sticking to blaming Forkner and one engineer who decided three seconds was enough for any pilot to figure out what MCAS was doing for the MCAS woes. Meanwhile, DoJ is putting Boeing employees in front of grand juries. This could all explode at any point. Calhoun's tenure could be very short. His interview with NYT did him no favors. He's not the second coming of Alan Mulally..
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keesje
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 3:52 pm

As I said earlier, I think it might be required. Being nice and quiet move the dirt under the xaroet, promoting people away without anything really changing, has always been the policy. But no guarantee for change.

He seems to be saying that.

"In the interest of demonstrating transparency and straight talk about our leadership point of view and current situation. I have said that transparency is a messy process but worth it in the end, and I still believe it."
"Never mistake motion for action." Ernest Hemingway
 
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Revelation
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 6:13 pm

keesje wrote:
As I said earlier, I think it might be required. Being nice and quiet move the dirt under the xaroet, promoting people away without anything really changing, has always been the policy. But no guarantee for change.

He seems to be saying that.

"In the interest of demonstrating transparency and straight talk about our leadership point of view and current situation. I have said that transparency is a messy process but worth it in the end, and I still believe it."

... yet he doesn't practice what he preaches. He's still referring to Forkner and the three second guy as the source of the MCAS problems without the transparency needed to verify such. It's absurd to think these two individuals alone were responsible because they aren't the ones who cooked up the no sim training mandate. He's not been transparent about what happened with MCAS, and when he was transparent about his feelings of US vs non-US pilots he displayed a strong and unhelpful tendency towards arrogance and righteousness. I don't think his tenure will end well for Boeing. I think he is disingenuous at best.

PS: Promoting people away is exactly what Airbus did to the original head of the A380 program, so it's not just a Boeing thing.
Wake up to find out that you are the eyes of the world
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ikolkyo
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Re: Boeing’s new CEO confronts its challenges

Sat Mar 07, 2020 9:47 pm

KarlB737 wrote:
Nothing against Boeing but I can't help wondering if fixing the Boeing issues would take less time if McDonnell-Douglas was still around and making planes providing the additional competition to the market place.


Honestly, present day Boeing is basically McDonnell-Douglas with a new name.
 
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par13del
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Re: Boeing’s new CEO confronts its challenges

Sun Mar 08, 2020 12:01 am

keesje wrote:
Trump & FAA in the pocket, because jobs & exports. https://www.fool.com/amp/investing/2019 ... -2019.aspx

So no Obama, I thought the 787 mess and other problems started long before Trump, probably better to say Congress and the Office of POTUS.
 
questions
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Re: Boeing’s new CEO confronts its challenges

Sun Mar 08, 2020 1:08 am

Revelation wrote:
william wrote:
If you read the article, Calhoun tackles the "you were on the board during all of this" issue.

"Calhoun and the rest of Boeing’s board never seriously questioned that strategy, in part because before the first MAX crash off the coast of Indonesia in October 2018, the company was enjoying its best run in years. What’s more, the board believed that Muilenburg, an engineer who had been at Boeing for his entire career, was so deeply informed about the business that he was a good judge of the risks involved in ramping up production.

“If we were complacent in any way, maybe, maybe not, I don’t know,” Calhoun said. “We supported a CEO who was willing and whose history would suggest that he might be really good at taking a few more risks.”"

No, he blustered his way through the question, like he did for the rest of the questions.

It's the board's job to question strategy and to not just believe the CEO.

At the same time Calhoun was on the board, he says he knew he would get DM's job if DM failed.

It seems like an almighty conflict of interest to me.

On top of that he convinces his chums on the board to give him a big bonus as a part of his CEO package.

All this paints a pretty ugly picture, IMO.


Corporate boards are nothing more than country club-like social clubs with insanely overpaid members who act like they are actually “working” four times a year. It’s all a farce.

Oh I have a board meeting next week at the Ritz Carlton, Half Moon Bay. The corporate jet picks me up at 8:30AM. I’ll be flying out there with C. Thaddeus Westheimer, III. He and I go all the way back to rowing at Harvard. Can you believe that? We have a full day of committee meetings on Tuesday. On Wednesday, the full board meets all day. We have a golf working meeting on Thursday morning and that afternoon we’re going to sit through a couple of presentations on strategic initiatives being led by some up and coming high potentials. I fly back on Friday morning, unfortunately commercial, first class. I’ll be exhausted. I just hope Bob’s secretary can get me that south-facing, ocean view corner room that I like so much.

Compared to the amount of convincing the average employee has to do to get a few thousand dollars more per year, for CEO’s it’s a walk in the park. For six and seven figures! It’s absurd.

Calhoun is being highly compensated with a very lucrative bonus target to do one thing: get the MAX flying again. As soon as airlines are flying the MAX he will be out of there. Calhoun will no doubt spread a lot of frosting on the messed up cake to make it look good. His successor will have a lot of real work to do to revitalize the company.
 
LCDFlight
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Re: Boeing’s new CEO confronts its challenges

Sun Mar 08, 2020 2:33 am

questions wrote:
Revelation wrote:
william wrote:
If you read the article, Calhoun tackles the "you were on the board during all of this" issue.

"Calhoun and the rest of Boeing’s board never seriously questioned that strategy, in part because before the first MAX crash off the coast of Indonesia in October 2018, the company was enjoying its best run in years. What’s more, the board believed that Muilenburg, an engineer who had been at Boeing for his entire career, was so deeply informed about the business that he was a good judge of the risks involved in ramping up production.

“If we were complacent in any way, maybe, maybe not, I don’t know,” Calhoun said. “We supported a CEO who was willing and whose history would suggest that he might be really good at taking a few more risks.”"

No, he blustered his way through the question, like he did for the rest of the questions.

It's the board's job to question strategy and to not just believe the CEO.

At the same time Calhoun was on the board, he says he knew he would get DM's job if DM failed.

It seems like an almighty conflict of interest to me.

On top of that he convinces his chums on the board to give him a big bonus as a part of his CEO package.

All this paints a pretty ugly picture, IMO.


Corporate boards are nothing more than country club-like social clubs with insanely overpaid members who act like they are actually “working” four times a year. It’s all a farce.

Oh I have a board meeting next week at the Ritz Carlton, Half Moon Bay. The corporate jet picks me up at 8:30AM. I’ll be flying out there with C. Thaddeus Westheimer, III. He and I go all the way back to rowing at Harvard. Can you believe that? We have a full day of committee meetings on Tuesday. On Wednesday, the full board meets all day. We have a golf working meeting on Thursday morning and that afternoon we’re going to sit through a couple of presentations on strategic initiatives being led by some up and coming high potentials. I fly back on Friday morning, unfortunately commercial, first class. I’ll be exhausted. I just hope Bob’s secretary can get me that south-facing, ocean view corner room that I like so much.

Compared to the amount of convincing the average employee has to do to get a few thousand dollars more per year, for CEO’s it’s a walk in the park. For six and seven figures! It’s absurd.

Calhoun is being highly compensated with a very lucrative bonus target to do one thing: get the MAX flying again. As soon as airlines are flying the MAX he will be out of there. Calhoun will no doubt spread a lot of frosting on the messed up cake to make it look good. His successor will have a lot of real work to do to revitalize the company.


With respect, I totally disagree that Calhoun has one job. Singular focus on getting 737 flying, no matter what the consequences, was exactly the problem here. That should not be his singular focus at all. Rather, his focus should be on long term growth of Boeing’s reputation and its stock. The correct decision may well be to apologize for the poor 737 design and leadership and cancel it. I don’t think that will happen, but the primary goal should be making Boeing a trusted, profitable leader in the industry. No matter what needs to happen to individual programs or staff members.
 
questions
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Re: Boeing’s new CEO confronts its challenges

Sun Mar 08, 2020 6:09 am

LCDFlight wrote:
questions wrote:
Revelation wrote:
No, he blustered his way through the question, like he did for the rest of the questions.

It's the board's job to question strategy and to not just believe the CEO.

At the same time Calhoun was on the board, he says he knew he would get DM's job if DM failed.

It seems like an almighty conflict of interest to me.

On top of that he convinces his chums on the board to give him a big bonus as a part of his CEO package.

All this paints a pretty ugly picture, IMO.


Corporate boards are nothing more than country club-like social clubs with insanely overpaid members who act like they are actually “working” four times a year. It’s all a farce.

Oh I have a board meeting next week at the Ritz Carlton, Half Moon Bay. The corporate jet picks me up at 8:30AM. I’ll be flying out there with C. Thaddeus Westheimer, III. He and I go all the way back to rowing at Harvard. Can you believe that? We have a full day of committee meetings on Tuesday. On Wednesday, the full board meets all day. We have a golf working meeting on Thursday morning and that afternoon we’re going to sit through a couple of presentations on strategic initiatives being led by some up and coming high potentials. I fly back on Friday morning, unfortunately commercial, first class. I’ll be exhausted. I just hope Bob’s secretary can get me that south-facing, ocean view corner room that I like so much.

Compared to the amount of convincing the average employee has to do to get a few thousand dollars more per year, for CEO’s it’s a walk in the park. For six and seven figures! It’s absurd.

Calhoun is being highly compensated with a very lucrative bonus target to do one thing: get the MAX flying again. As soon as airlines are flying the MAX he will be out of there. Calhoun will no doubt spread a lot of frosting on the messed up cake to make it look good. His successor will have a lot of real work to do to revitalize the company.


With respect, I totally disagree that Calhoun has one job. Singular focus on getting 737 flying, no matter what the consequences, was exactly the problem here. That should not be his singular focus at all. Rather, his focus should be on long term growth of Boeing’s reputation and its stock. The correct decision may well be to apologize for the poor 737 design and leadership and cancel it. I don’t think that will happen, but the primary goal should be making Boeing a trusted, profitable leader in the industry. No matter what needs to happen to individual programs or staff members.


That is not how his current compensation plan is designed.

Compensation of President and Chief Executive Officer
As previously disclosed, on December 22, 2019, the Board of Directors (the “Board”) of The Boeing Company (the “Company”) elected David L. Calhoun to serve as President and Chief Executive Officer effective January 13, 2020. On January 10, 2020, the Board approved the compensation for Mr. Calhoun in connection with his new role. Mr. Calhoun will receive a base salary at an annual rate of $1.4 million. In addition, Mr. Calhoun will be eligible to receive:
• an annual incentive award with a target value of 180% of base salary, which for 2020 only will pay out at no less than target;
• long-term incentive awards with a target value of 500% of base salary, granted subject to the terms of the Company’s long-term incentive program, as described on page 31 of the Company’s proxy statement for its 2019 Annual Meeting of Shareholders filed with the Securities and Exchange Commission (“SEC”) on March 15, 2019 (the “2019 Proxy Statement”);
• an additional long-term incentive award valued at approximately $7 million which will be earned only upon continued employment and the achievement of several key business milestones, including full safe return to service of the 737 MAX; and
• a supplemental award of restricted stock units (“RSUs”)-subject to a three-year vesting period-valued at $10 million, designed to compensate Mr. Calhoun for amounts forfeited upon his departure from his prior employer.

The long-term incentive awards described above will be subject to the terms and conditions set forth in The Boeing Company 2003 Incentive Stock Plan and the relevant notice of terms, which will be filed in a timely manner following the grant date of the relevant award. In addition, Mr. Calhoun’s incentive awards will be subject to an enhanced clawback policy that will apply to situations of misconduct that compromise the safety of the Company’s products or services.


Source: https://www.sec.gov/ix?doc=/Archives/edgar/data/12927/000001292720000003/a202001jan108k.htm

Interestingly, he has a guaranteed cash bonus in 2020 of no less than $2,520,000. That means his bonus target is NOT linked to company performance or attaining critical strategic milestones.

His long term incentives tied to the MAX, most likely RSU’s or a combination of RSU’s and stock options, are tied to “continued employment” meaning in order to receive the full target amount he will have to stay employed with Boeing through the 3-4 year vesting period. What we don’t know are the terms of his contract and Amy severance clauses that may allow for automatic vesting or not losing invested amounts under certain circumstances.

I doubt he will be in his role for three years. If the MAX returns to service, we will see additional, required SEC filings stating changes to his compensation, i.e., for year two. He will make a boatload of money. If the MAX does not return to service, he will still make a decent CEO salary. But he is being heavily compensated for the “full safe return to service of the 737 MAX.”
 
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AirlineCritic
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Re: Boeing’s new CEO confronts its challenges

Sun Mar 08, 2020 7:04 am

It is terrible. Nothing has changed, still blaming pilots when even the newly-trained and they-knew-what-they-were-going-face pilots fail to manage the MAX's complex xmas tree lights warning situations. I feel like a third CEO is needed.
 
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keesje
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Re: Boeing’s new CEO confronts its challenges

Sun Mar 08, 2020 4:24 pm

par13del wrote:
keesje wrote:
Trump & FAA in the pocket, because jobs & exports. https://www.fool.com/amp/investing/2019 ... -2019.aspx

So no Obama, I thought the 787 mess and other problems started long before Trump, probably better to say Congress and the Office of POTUS.


You are correct, FAA influence curtailling / streamlining really kicked off with the 2012 FAA re-authorization https://gama.aero/wp-content/uploads/FA ... 012-08.pdf .

And everybody, specially congress, strongly drove this and until very recently GAO proudly reported on its progress.
:redflag: Warning: reading this with todays knowledge hurts the eyes. :redflag: . . https://www.gao.gov/assets/690/683649.pdf

All said and done, looking forward I guess / think there will be some kind of deal launching a new, "10% better than NEO+" for first flight in 2026.
Included in the deal: US government (no laissez fair no more), Boeing, Spirit, Raytheon Collins, GE, NASA, FAA.

Free market ideology will be parked, government support in many ways will flow, WTO be ignored.
For the higher strategic interest of offering a home build competitive product in the biggest market segment.

Airbus will cry foul, but in the end it's probably the best for the industry longer term..
Free market capitalism nearly killed Boeing, so the rule set changed.
"Never mistake motion for action." Ernest Hemingway
 
Sokes
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Re: Boeing’s new CEO confronts its challenges

Sun Mar 08, 2020 6:30 pm

SuseJ772 wrote:
I was unaware he was a board member before, but as someone who has sat on board calls for publicly traded companies, I will say all the more there is often dissent within that. That actually explains to me MORE now how a) he got the position and b) his blunt comments. He’s probably been speaking up for a while internally. He was probably the anti-Dennis. This when it came time to make a point, they put in Anti-Dennis.

At this level there is often dissent. And lots of it. But the point is, you voice your dissent, argue passionately, but then you leave the room united publicly (or you leave the board). It doesn’t mean your agree and won’t continue to dissent privately.

And one of the reasons you stay is because of a situation like this. You don’t want the whole board (even if it clearly was the majority before) to be all “pro-Dennis”


I am wondering if I should believe that. Therefore a few questions:
a) Do board members get a fixed compensation, or does their compensation also depend on stock price?
b) What is talked within a board meeting is none of the shareholder's business?
c) The last years were a seller's market. Boeing had to decide if they wanted to spend profits to design a new plane or to buy back shares. I assume the board had to agree to the policy of share buybacks? If yes, would the board vote for somebody who didn't want that?
d) Boeing wanted to avoid separate simulator training for the Max. Would you expect the board to be involved in this question?

I ask the last question because I wonder how deep the board is involved in catastrophic wrong decisions. The deeper they are involved, the less I expect them to vote for a rebel who had always opposed them. Unless of course all of them had a board meeting in which they decided that they should change from Saul to Paul.
Why can't the world be a little bit more autistic?

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