Lazonick/Sakinç „Make Passengers Safer? Boeing Just Made Shareholders Richer.“

In an article published today and well worth reading, William Lazonick and Mustafa Erdem Sakinç look at corporate governance at Boeing and how this is linked to the two crashes of Boeing 737 Max 8 aeroplanes with a total of 346 fatalities. They also trace the path that led to „maximising shareholder value“ becoming the overriding goal of corporate governance. Their assessment: „Our research, based on publicly available information, strongly suggests that the dedication of Boeing's senior executives to increasing their company's profits and stock yield - which also augmented their own compensation - resulted in management decisions that contributed to the two 737 MAX crashes.“

To the article (31.05.2019)