Boeing’s largest shareholder, 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 were included in a letter from the investment group’s top company engagement official and seen by the Financial Times.
In the letter sent this week, W Robert Main III, who is 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,” Mr 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.”
Vanguard is Boeing’s largest shareholder with a 7.1 per cent stake.
via Financial Times