Vanguard raises ‘concerns’ with Boeing leaders over 737

Vanguard has raised concerns with Boeing’s management over its handling of the grounded 737 Max, saying its fund managers have become “very concerned” by reports of oversight failures in the wake of the aircraft’s two crashes. The issues raised by Vanguard, which is Boeing’s largest shareholder with a 7.1% stake, were included in a letter from the investment group’s top company engagement official. In the letter sent this week, W Robert Main III, head of portfolio company engagement, analysis and voting, wrote that Vanguard had “engaged with Boeing leadership and directors to convey our concerns”, adding that it planned to continue the discussions. “In our role as shareholders, we expect companies to effectively oversee the material risks of their business,” Main wrote. “In Boeing’s case, our expectation is that Boeing leadership, including its board of directors, are closely monitoring and maintaining the safety of its aircraft.” After the 737 Max was grounded following crashes in Ethiopia and Indonesia that killed 346 passengers, Boeing faced a campaign from shareholder advisory groups for a management shake-up, including a call for CE Dennis Muilenburg to be stripped of his role as board chairman. Among the most vocal critics has been consumer activist Ralph Nader, whose grandniece died in the March crash of Ethiopian Airlines flight 302. Nader had written to Vanguard CE Mortimer Buckley calling on him to push for an independent investigation into “management misdeeds”. Story has more details.<br/>