Boeing's Strategic Changes Linked to CEO Compensation Growth and Oversight Concerns

BRIDGEPORT, Conn. - Dec. 3, 2024 - PRLog -- The issue began in 2001, when Boeing announced massive layoffs of 20,000–30,000 employees following the downturn in the aviation industry after 9/11 (https://money.cnn.com/2001/09/19/europe/boeing/index.htm )

In April 2002, Boeing implemented two pivotal changes in its supplier oversight: adopting NADCAP (National Aerospace and Defense Contractors Accreditation Program) (https://www.boeingsuppliers.com/nadcap/nadcapletter.pdf   In this document what does this mean? -need arises  )  and issuing JULY 2002 supplier bulletin PQIT–02–001 (https://www.boeingsuppliers.com/supplier/BQMS_Bulletin-BQMS_CRB_and_Survey-July_2002.pdf  In this document what does this mean? - if need be) These initiatives eliminated the need for on-site audits of suppliers and subcontractors, relying instead on third-party certifications like AS9100 accredited by ANSI-ANAB.

While these changes were framed as efficiency measures, they marked a shift in Boeing's operational focus. By outsourcing supplier auditing, Boeing significantly reduced costs, enabling greater emphasis on financial performance, including stock buybacks and executive pay. Over the next two decades, Boeing's CEOs saw their compensation grow by an astounding 1150%, rising from $2 million in 2002 to $25 million in 2022.

In 2009, the FAA granted Boeing authority to self-certify its aircraft technologies (example MCAS System -Maneuvering Characteristics Augmentation System Reference Ethiopian & Indonesian crashes 340+ fatalies) , and designs (Reference April 17 DHS subcommittee meeting Capital Hill Sam Salephour whistleblower design issues Boeing 777 & 787-(https://www.newstribune.com/photos/2024/apr/18/3749044/)  under the Organization Designation Authorization (ODA) program. This designation allowed Boeing to act as an agent of the FAA, approving its own products without direct FAA oversight. Critics argue this shift weakened regulatory safeguards, prioritizing efficiency over safety and independent verification. https://www.avweb.com/news/faa-grants-boeing-more-autonomy-on-certification/

In contrast, IAM 751 union workers, who represent Boeing's manufacturing workforce, experienced a much smaller increase. The average annual pay for IAM 751 members rose from $60,000 in 2002 to $85,000 in 2022—a 41.67% increase over the same period.

These developments highlight growing disparities in compensation and oversight. Critics claim Boeing's cost-cutting measures and self-certification authority prioritized shareholder returns and executive pay over employee equity, safety, and product quality, with profound implications for the company's culture and operations.