737 MAX: Boeing could receive compensation of $ 237.5 million from directors

Boeing shareholders reached an out-of-court settlement with directors of the aircraft manufacturer, accused of negligence after the two 737 MAX accidents, providing for the payment of compensation to the company of $ 237.5 million (approximately $ 205 million). euros).

While still to be validated by a judge, the agreement, which the Wall Street Journal echoed first Thursday, was made public, Friday, November 5, by the services of the Comptroller of the State of New York and the Association of Retired Firefighters and Police of Colorado. They had seized, in June 2020, the court of the chancellery of Delaware, a court specializing in disputes concerning shares and title deeds.

Launched in 2011 and first put into service in 2017, the 737 MAX was involved in two plane crashes, one by Lion Air in October 2018 and the other by Ethiopian Airlines in March 2019, which killed 346 in total. Investigations have revealed that these accidents were linked to the Anti-Stall System (MCAS).

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Shareholders highlighted the fact that none of the board committees deal specifically with safety.

“We sued the Boeing board of directors for failing in its responsibility to oversee safety and protect the company, its shareholders and its customers from unsafe business practices.”New York State Comptroller Thomas DiNapoli said in a statement.

These shareholders criticized former and current members of the board of directors for having failed in their obligations by not ensuring the existence and proper functioning of control and information instruments relating to the security of the company. 737 MAX. The indemnities provided for Boeing will be borne by the insurers of the persons affected by the complaint, even though the agreement does not include an acknowledgment of negligence on their part.

“Restore the company’s reputation”

The text also includes the creation of a post of mediator to whom certain employees can directly report their comments on working conditions as well as the appointment of an additional administrator with experience. “In aviation / aeronautics, engineering and / or supervision of product safety”.

It also plans to continue including criteria on aviation safety in the calculation of executive compensation and the publication each year of a report on improvements in this area.

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“We hope that in the future the reforms agreed upon in this agreement will help protect Boeing and passengers from further tragedies and begin to restore the reputation of the company.”, to conclude Thomas DiNapoli.

A spokesperson for the group assured Friday that since the accidents, Boeing “Has taken important steps to accentuate and strengthen its commitment to aviation safety”. The manufacturer notably appointed in 2021 to its board of directors Stayce Harris, which has more than 10,000 hours of flight time on Boeing planes, and David Joyce, former executive of the engine manufacturer GE Aviation.

The additional reforms provided for in the agreement “Will further improve the safety and quality of our work”, added the spokesperson.

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The World with AFP

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737 MAX: Boeing could receive compensation of $ 237.5 million from directors