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Boeing SEC Settlement Reveals Flaws in Corporate Liability
Boeing pays $200 million but the former CEO pays only $1 million after receiving a $62 million golden parachute. He knew the planes were flawed yet publicly told people and investors they were fine and people died as a result: https://npr.org/2022/09/22/1124617261/boeing-will-pay-200-million-to-settle-sec-charges-over-737-max-crashes He should be in jail, but as we know corporations are “people” in the eyes of the law. Where does the buck stop? Nowhere. Or rather in this case it stops in this executive’s pockets.
Note the new tone in these new SEC settlements under Gensler. This may be 3rd or 4th where the settlement announcements includes admission of guilt by parties, or clear finger pointing by the SEC. This is different from the past practice of just settling without admitting/acknowledging guilt or wrongdoing.
In Boeing's case, just so that point was not missed, Gensler also tweeted yesterday,
"In times of crisis & tragedy, it is especially important that public companies & execs provide full, fair, & truthful disclosures to the markets.
The Boeing Company & its former CEO failed in this most basic obligation."
That may be the SEC’s tone, but the usual conditions of these settlements seem to have applied:
In addition to Boeing's $200 million penalty, Muilenburg will pay $1 million, but neither he nor the company admits to any wrongdoing.
I’ve seen that “not admit any wrongdoing” language in every settlement I can remember. Usually, that’s how these deals work. The company pays some money and then moves on like nothing happened. I should add that it’s not just the victims who died and their families who suffer here. The shareholders were also lied to by this CEO and it’s the shareholders who will now have to pay for this SEC settlement as well as for the CEO’s golden parachute from profits. This should be a criminal case.
Boeing pays $200 million but the former CEO pays only $1 million after receiving a $62 million golden parachute. He knew the planes were flawed yet publicly told people and investors they were fine and people died as a result: https://npr.org/2022/09/22/1124617261/boeing-will-pay-200-million-to-settle-sec-charges-over-737-max-crashes He should be in jail, but as we know corporations are “people” in the eyes of the law. Where does the buck stop? Nowhere. Or rather in this case it stops in this executive’s pockets.
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In Boeing's case, just so that point was not missed, Gensler also tweeted yesterday,
"In times of crisis & tragedy, it is especially important that public companies & execs provide full, fair, & truthful disclosures to the markets.
The Boeing Company & its former CEO failed in this most basic obligation."
https://twitter.com/GaryGensler/status/1573067867368706049