Boeing CEO is taking a pay cut

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MountainDude

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MountainDude
It looks like tough times are getting tougher for Boeing. I hope they don't go bankrupt.
www.flyingmag.com

Boeing to Furlough Workers Amid Ongoing Strike

Two days after announcing a hiring freeze, Boeing has notified employees it will be moving forward with furloughs due to the aerospace workers’ strike.
www.flyingmag.com www.flyingmag.com
 
I have high hopes for the new CEO. So far, he seems to be legit. Or at the least, he is saying some of the things Boeing’s customers and fans want to hear; the plane buying customers, not the dividend customers. Hopefully he can turn the company around and get it back to at least a semblance of its former glory.
 
Boeing 381 high now 154 per share, if this goes on into Jan 2025 who knows. At $100 million a day how long can Boeing hang on, and how long can the strike fund pay those on the picket line.
 
MountainDude said:
It looks like tough times are getting tougher for Boeing. I hope they don't go bankrupt.
www.flyingmag.com

Boeing to Furlough Workers Amid Ongoing Strike

Two days after announcing a hiring freeze, Boeing has notified employees it will be moving forward with furloughs due to the aerospace workers’ strike.
www.flyingmag.com www.flyingmag.com
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Eh, probably needs to be split up anyway. Consequence of being allowed to get so big that they were in charge of policing themselves.
 
Boeing can’t fix their problems without reorganizing the company, replacing much of the executive staff, and making a dramatic culture shift. That won’t happen over a few weeks. It takes years, maybe a decade. They should have started in 2019. Five years have gone by and the company hasn’t fixed a bloody thing.

It’s going to continue to get worse.
 
Boohoo for him, he might only get 15 mil this year instead of 22. Give me a break.
 
Too-big-to-fail, I smell another government bailout.
 
AKiss20 said:
Boohoo for him, he might only get 15 mil this year instead of 22. Give me a break.
Click to expand...

Remember when Iacocca stepped in to rescue Chrysler and only accepted $1 in salary? Just a gesture, and he made plenty of money in the long run, but it does set a tone and helps morale a bit. It doesn't help matters at Boeing that Ortberg just bought a $4M home while telling his striking workers that Boeing can't afford to meet their salary demands.

Ortberg is 64 years old. He's not in this for the long haul, he has no long-term relationship with Boeing (he spent 38 years with Rockwell), and he's going to pocket what bucks he can quickly and bail out without fixing anything.
 
brien23 said:
Too-big-to-fail, I smell another government bailout.
Click to expand...
Largest US exporter of, well, anything. By a large margin. You can guarantee a bail out of it comes to that.

As for needing a cultural change, they had one. It just went the wrong directions
 
I am not defending Mr. Ortberg. $4.2 million doesn't buy as much home in Seattle as one might think. According to real estate records here is the information on the property: (I've purposely not doxxed the guy and his family).
Year Built 1928
Total Square Footage 3780
Number Of Bedrooms 4
Number Of Baths 3.75
Grade 10 Very Good
Condition Very Good
Lot Size 9217
Views No
Waterfront No
MediaHandler.jpg
 
Yeah 4.2 mil home in Seattle would be considered a modest, even starter home in some parts of the country.
 
Domenick said:
I am not defending Mr. Ortberg. $4.2 million doesn't buy as much home in Seattle as one might think. According to real estate records here is the information on the property: (I've purposely not doxxed the guy and his family).
Year Built 1928
Total Square Footage 3780
Number Of Bedrooms 4
Number Of Baths 3.75
Grade 10 Very Good
Condition Very Good
Lot Size 9217
Views No
Waterfront No
View attachment 133680
Click to expand...

I don't disagree, but the optics of buying it in the middle of a labor dispute are awful. The guy isn't sensitive enough to realize this, or maybe he is but just doesn't give a flip, and either way it's not a great way to start a tenure at the company.

Imagine if, instead, he had decided to rent an apartment near the plant for his first six months or year, and taken a token salary to start. The message of "We're in this together, and we'll all have to tighten our belts for a little while to save the company" would go a long way for his credibility. But he hasn't sent any message close to that, so I suspect he's gotten off on the wrong foot with the employees he's now in charge of.
 
Rockymountain said:
Yeah 4.2 mil home in Seattle would be considered a modest, even starter home in some parts of the country.
Click to expand...
Oh just stop. There are tens of thousands of people living in Seattle who don't own 4 million-dollar homes. Now, if you want to live in high-end neighborhoods and areas in the middle of Fremont, Ballard, or Capitol Hill yeah sure. Plenty of stuff is $1MM or less, even waterfront. Nothing modest about a highly-furnished 4K sq ft home in the middle of one the more exclusive golf communities in Seattle.
 
Half Fast said:
I don't disagree, but the optics of buying it in the middle of a labor dispute are awful. The guy isn't sensitive enough to realize this, or maybe he is but just doesn't give a flip, and either way it's not a great way to start a tenure at the company.

Imagine if, instead, he had decided to rent an apartment near the plant for his first six months or year, and taken a token salary to start. The message of "We're in this together, and we'll all have to tighten our belts for a little while to save the company" would go a long way for his credibility. But he hasn't sent any message close to that, so I suspect he's gotten off on the wrong foot with the employees he's now in charge of.
Click to expand...
At least he put down roots in the right place. And security could be a consideration. Time will tell which foot it was.
 
Half Fast said:
True.

Of course, when the 737 MAX debacle began in 2019, many said "time will tell" regarding the future of Boeing. It's been five years now, and time has told us a lot.
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WRT Ortberg, I mean. At least they found a CEO that would take the job. That was actually the first step.

Or maybe it was Calhoun floating away on his parachute of gossamer gold.
 
Piperonca said:
WRT Ortberg, I mean. At least they found a CEO that would take the job. That was actually the first step.

Or maybe it was Calhoun floating away on his parachute of gossamer gold.
Click to expand...

Sorta like trying to hire a new captain for the Titanic after it had struck the iceberg and run out of lifeboats....
;)
 
I doubt you could pay me enough to be grilled as the new guy by some of the pompous asses at a congressional hearing (and I’ve been at a few as a horseholder).
 
X3 Skier said:
I doubt you could pay me enough to be grilled as the new guy by some of the pompous asses at a congressional hearing (and I’ve been at a few as a horseholder).
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I dunno, I can sit there with a blank look on my face for a long time if you're paying me $4MM/year. I'll probably even sleep good afterwards lol.
 
Didn't take them long to scrub him from the official Boeing biography site:

Executive Biographies

www.boeing.com www.boeing.com

en.wikipedia.org

Theodore Colbert III - Wikipedia

en.wikipedia.org en.wikipedia.org
No aerospace engineering experience. Basically, an IT guy all his career until becoming president and CEO Boeing Global Services, then 3 years later to CEO Boeing Defense, Space and Security. Seems like he went from a career IT guy into supply chain management.
Peter Principle? Unlucky? Scapegoat?
 
Domenick said:
Didn't take them long to scrub him from the official Boeing biography site:

Executive Biographies

www.boeing.com www.boeing.com

en.wikipedia.org

Theodore Colbert III - Wikipedia

en.wikipedia.org en.wikipedia.org
No aerospace engineering experience. Basically, an IT guy all his career until becoming president and CEO Boeing Global Services, then 3 years later to CEO Boeing Defense, Space and Security. Seems like he went from a career IT guy into supply chain management.
Peter Principle? Unlucky? Scapegoat?
Click to expand...
After reading about how bad he screwed up the E7 Wedgetail program cost estimate with the DoD, I’m not surprised.
 
Half Fast said:
Ortberg is 64 years old. He's not in this for the long haul, he has no long-term relationship with Boeing (he spent 38 years with Rockwell), and he's going to pocket what bucks he can quickly and bail out without fixing anything.
Click to expand...
That's not the Kelly Ortberg I know from Collins. He could retire comfortably if he wanted to; I believe he truly wants to make a positive difference here and lead Boeing to better days.

- Martin
 
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