'I know it happens': Boeing chief admits the company has retaliated against whistleblowers

Sen. Richard Blumenthal on Tuesday gave a hint about how many Boeing whistleblowers there are. "We have more than a dozen whistleblowers by this point, and we encourage more to come forward," the senator said early in the hearing.

"Since opening the inquiry, the Subcommittee has received outreach from additional whistleblowers in the aviation industry, including individuals with firsthand knowledge of Boeing’s operations and policies, who have come forward with new information about additional safety risks stemming from Boeing’s manufacturing practices," the memo reads.

"Some whistleblowers who have come forward to the Subcommittee wish to remain anonymous, but others have either spoken out publicly or are willing to have their stories be public for the first time."

Boeing isn't alone in feeling lawmakers' ire over their aircraft.

Sen. Maria Cantwell, a Democrat from Washington state, questioned the backgrounds of some of the FAA's safety inspectors.

“I’m definitely hearing ‘We don’t have enough aviation inspectors.’ And ‘We don’t even have enough qualified instructors at schools,’” she said at the hearing. “One story I heard was that they said, ‘Yes, I have safety experience. But it’s in the dairy industry.’ We need an aviation inspector on the floor who has aviation experience, not just safety experience.”

The hearing in Washington today had some poignant and spicy moments.

For all the mistakes and safety problems Boeing has managed under CEO Dave Calhoun’s watch — resulting in a dozen corporate whistleblowers, multiple groundings and a chunk of a plane’s fuselage literally blowing off in midair — virtually no one has held him to account.

Certainly not Boeing’s board of directors, which has responded by lavishing him with a salary and stock options worth more than $20 million a year, plus a $45 million golden parachute when he retires later this year.

The hearing in Washington may not have fully satisfied family members of victims who have died in Boeing airplanes or other people affected by the companies misfires in 2024. But the hearing showed flashes of accountability and hard questions.

As Boeing CEO David Calhoun stood to leave the hearing room, families once again held pictures of loved ones who died in a 737 Max crash. 

“How could you?” yelled Clariss Moore — mother of Danielle Moore, a traveler who died in a crash in Ethiopia in 2019 — as Calhoun exited the room.

In an interview with CNN, Moore said that she was not satisfied with Calhoun’s apology and called for criminal prosecution against him and other Boeing executives.

“What is justice? What is accountability? They should be in jail,” she said.

Several other family members who attended the hearing, gathered outside the Senate hearing room and expressed a similar sentiment. Many called for criminal prosecution, saying that the executives have not been held accountable.

They also expressed outrage at Calhoun’s salary — $32.8 million per year — with Moore saying to CNN “is that the cost of my daughter’s life?”

The families were also dismayed at Calhoun’s inability to answer several Senators’ questions during the hearing. Calhoun promised to follow up with the committee with these answers.

Despite the attention Tuesday's hearing about Boeing's safety problems will garner, it's not clear whether it will produce significant change at the company, said Richard Aboulafia, managing partner for AeroDynamic Consultancy, an aerospace advisory firm.

“Nothing has produced change (at Boeing) except frustration from a bunch of airline customers,” Aboulafia said. “I’m not sure what will change as a consequence of this. He (Boeing CEO Dave Calhoun) needs to go. He has shown a strong desire to double down on what’s bad.”

Aboulafia said the board has shown little indication of seeing a need to change the way things are done at Boeing, calling it a "board on autopilot." The board approved a $32.8 million pay package for Calhoun in 2023, a 45% increase from the $22.6 million he received for 2022. And it could have been a lot more: He declined to accept his annual incentive bonus of $2.8 million – a request the board said he made after the Alaska Air incident.

At the end of the hearing Tuesday Calhoun pointed out that there have been changes among Boeing top mangers since the two fatal crashes and the grounding of the Max in 2019 and 2020, as well as additional management changes since the Alaska Air incident.

He defended using internal candidates from Boeing to fill the open positions.

"We try to select people who know a lot about airplanes," he said.

But Senator Richard Blumenthal, the chairman of the subcommittee, argued that Boeing needed to turn to outsiders to make a true change in the culture at the company.

"You can talk about these changes but making the changes may well require a different team," he said.

"In effect, scapegoat workers rather than the management team responsible ultimately for conducting the company," Blumenthal said.

"I think that you have certainly demonstrated that you can talk about these changes, but making the changes may well require a different team," he said.

Boeing CEO Dave Calhoun was unable to answer Senator Richard Blumenthal's questions on more than one occasion during his Senate testimony.

When asked about the settlement that Boeing paid, including a $243 million criminal penalty, after two deadly crashes involving its 737 Max aircraft more than five years ago, Calhoun stumbled, saying he didn't know the precise dollar amount.

"You must know the precise number. You're the CEO of the company," Blumenthal said.

Calhoun also said he didn't have a "precise number" when asked how much of Boeing's total settlement amount was covered by insurance. He also said he didn't "have an answer" to whether Boeing had taken tax deductions on the settlement amount to reduce its impact on the company.

"You don't have an answer to that, as the CEO of the company? I find that hard to believe," Blumenthal said.

Earlier in the hearing, Blumenthal asked Calhoun how many Boeing employees had been fired for "retaliating against whistleblowers," which Calhoun had said was against Boeing company policy.

"Senator, I don't have that number on the tip of my tongue," Calhoun said. "But I know it happens."

"I am happy to follow up and get you that number," he added.

Republican Sen. Josh Hawley accused Boeing CEO Dave Calhoun of trying to blame the company's problems on the employees, when it's actually the management's fault.

"I don't think the problem's with the employees," Hawley said. "I think the problem's with you. You. It's the c-suite. It's the management. It's what you've done to this company. That's where the problem is."

Hawley said Boeing's machinists and engineers are probably the best in the world.

"You're the problem," he said to Calhoun. "And I just hope to God you don’t destroy this company before it can be saved."

Boeing CEO Dave Calhoun has already announced plans to retire by the end of this year. But for Senator Josh Hawley, that's not soon enough.

In a brutal back and forth during Tuesday's hearing on Boeing's broken safety culture, the Missouri Republican questioned Calhoun about how much money he was paid. Calhoun declined to answer directly, responding only "It's a big number."

Hawley cited the $32.8 million in salary that was reported by Boeing for his pay in 2023, which was a 45% increase over the previous year.

After Calhoun conceded the company had not seen a profit in his four years as CEO and that its stock price was down over that period, Hawley cited the salary and pay raise again and said, "If anyone has come out of this deal good, it's you,"

"Why haven’t you resigned?" Hawley followed up.

"Senator, I’m sticking this through. I’m proud of having taken the job. I’m proud of this safety record, and I’m proud of our Boeing people," Calhoun replied.

"You’re proud of this safety record?" Hawley asked incredulously.

"I’m proud of every action we have taken," Calhoun replied.

"Every action you’ve taken?" Hawley asked again.

"Yes, sir," Calhoun said.

"Wow. There’s some news for you," Hawley concluded.