Boeing says 2 directors are leaving as board faces scrutiny

PTI Updated - February 18, 2021 at 10:26 AM.

Arthur Collins Jr., chairman of the committee that sets executive compensation, and Susan Schwab won’t stand for re-election at Boeing’s annual shareholder meeting in April

(FILES) In this file photo the Boeing logo is pictured at its Renton Factory, where the Boeing 737 MAX airliners are built in Renton, Washginton on April 20, 2020. - Boeing said on February 9, 2021 it again suffered more cancellations than new orders for aircraft in January as the Covid-19 pandemic continues to weigh on airlines. The aerospace giant said it delivered 26 planes to its customers, mainly of the 737 MAX, after commercial flights of the aircraft resumed following the 20-month grounding in the wake of two deadly crashes. (Photo by Jason Redmond / AFP)

Boeing said on Thursday that two of its directors are retiring, a sign of further change on the company's board as it faces a shareholder lawsuit alleging weak overview during the 737 Max crisis.

The Chicago-based aircraft maker said Arthur Collins Jr., chairman of the committee that sets executive compensation, and Susan Schwab won’t stand for re-election at Boeing’s annual shareholder meeting in April.

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Boeing directors and executives were named in a shareholder lawsuit filed in a Delaware court that alleges the board failed to properly oversee management during engineering problems with the 737 Max. The plane was grounded for 20 months after two crashes that killed 346 people. The crisis has cost Boeing billions.

Last month, former KPMG CEO Lynne Doughtie replaced Caroline Kennedy, daughter of President John F Kennedy, on the board. In 2020, two new directors joined, and the board created a safety committee. The year before that, CEO Dennis Muilenburg was ousted and replaced by David Calhoun, who had been board chairman.

Collins is a former CEO of medical-device maker Medtronic Inc. Schwab was US trade representative under President George W Bush.

Boeing did not announce nominees to replace them.

Published on February 18, 2021 04:40