Posted on 03/16/2024 10:49:57 PM PDT by MinorityRepublican
We can demand it now. Antitrust.
For years I have heard airline pilots and a pilot union negotiator I know complain about Boeing's decline in quality and how Airbus makes better aircraft. My casual impression as an occasional air traveler is the same. I recall one pilot saying that he would retire rather than have to pilot one of Boeing's carbon fiber hulled aircraft. He predicted that quality control issues would lead to windows and doors blowing out.
Boeing is an example of failed corporate compensation incentive schemes.
For most corporations senior executives benefits by short term upward movements in stock prices.
If Boards of Directors insisted on rewarding for long term instead of short term performance they would see a lot less short-cuts by senior management.
That might help, but even without stock incentives, most managers promote by appearances, credentials, diversity, connections, and recent performance. Indeed, with frequent changes in jobs and duties, it is often hard to accurately and fairly assess long term job performance. And genuine merit and good performance by an employee can be threatening to superiors.
Long term stock price is the measure of long term performance.
Let us say a new President of the company is hired in 2024.
As you say we have no idea whether they will last just six months or twenty years.
However, the long term compensation simply says that there will be deferred payments (details in employment contract) that will be based on the stock price in 2034.
Obviously those payments cannot be made until 2034.
That would motivate the President to think long term.
I agree that Boeing made some huge mistakes. In fact i would argue that the 737-max problem was should have put some people in prison. But that does not mean people should blame them for things that they have not been proven guilty off. In fact these latest things that are more likely to be the fault of other people such as maintenance people.
ONCE the plane leaves Boeing & is in the hands of the airline -—maintenance isn’t their problem.
I am FAR more suspicious of DEI person’s doing maintenance when they cannot pick strawberries
In addition to long term thinking, a good strategy and the CEO's skills, character, and dedication to task matter, as do that of the other members of his team, and the quality of the board's supervision and support.
In addition, market conditions, consumer preferences, and regulatory environment have their effects, and the performance of Boeing's divisions depend on company culture and the quality of people deep in the ranks. The many elements and the costs and risks inherent in airline design and manufacturing make it a "sporty game."
AVIATION PING!................
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