Boeing Faces Potential Shareholder Rebuke Over Safety Issues

Boeing's Annual Meeting Could See Shareholder Rebuke Amid Safety Concerns.

Boeing is heading into its annual shareholder meeting facing potential drama and a shareholder rebuke over ongoing safety and quality control issues plaguing the crisis-ridden company.

While the aerospace giant has routinely defeated shareholder proposals at past meetings that typically last an hour or less, this year's gathering brings greater chances of conflict. Leading shareholder advisory firms have issued stinging rebukes against outgoing CEO Dave Calhoun ahead of his planned 2024 exit.

Institutional Shareholder Services (ISS) has recommended a "no" vote on Calhoun's 2023 compensation package totaling around $33 million, including over $30 million in stock awards. ISS dismissed Boeing's justification for another increase in Calhoun's potential long-term incentives as "not particularly compelling."

The pushback comes as Boeing faces intense regulatory scrutiny following the near-catastrophic Alaska Airlines flight in January that prompted tough questions for Calhoun. The company is working to meet an FAA deadline in late May to show progress on safety and quality control before lifting constraints on 737 MAX production.

Compounding issues, the Justice Department will decide in July whether to criminally prosecute Boeing. Then in September, the firm risks a strike by 30,000 workers if it fails to reach a new contract with the machinists' union.

While hoping to avoid shareholder revolts at what is typically a routine event, Boeing is contending with a perfect storm of crises that have rattled confidence in the company's leadership and commitment to safety reforms following the 737 MAX disasters.