Fleecing Workers While Bosses Get Rich
Corporate social responsibility is the second-biggest con of 2019 (Donald Trump remains in first place).
Consider Boeing, whose board just fired its CEO, Dennis Muilenburg, in order “to restore confidence in the company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders”.
Restore confidence? Muilenburg’s successor will be David Calhoun, who, as a longstanding member of Boeing’s board of directors, allowed Muilenburg to remain CEO for more than a year after the first 737 Max crash and after internal studies found that the jetliner posed an unacceptable risk of accident. It caused the deaths of 346 people.
Muilenburg raked in $30m in 2018. He could walk away from Boeing with another $60m.
Boeing isn’t the only large corporation with a confidence problem.
Until his ouster, Muilenburg was a director of the Business Roundtable, an association of 192 CEOs of America’s largest corporations. With great fanfare last August, it announced a “fundamental commitment to all of our stakeholders” (emphasis in the original) and not just their shareholders.