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View Diary: Boeing's outsourcing strategy in the spotlight as FAA grounds the Dreamliner (196 comments)

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  •  Their CEO gets an approximately $20M compensation (4+ / 0-)

    package these days, even without a bonus for meeting developmental/deliverable milestones (i.e., the Dreamliner project has had problems for awhile).

    So, he's rather immune to these kinds of issues and can afford to outsource his way to a lower quality product, at least for awhile.

    "So, please stay where you are. Don't move and don't panic. Don't take off your shoes! Jobs is on the way."

    by wader on Fri Jan 18, 2013 at 09:43:17 AM PST

    •  One wonders why the customers - the airlines (3+ / 0-)
      Recommended by:
      wader, elwior, a2nite

      who basically invest huge sums in down payments do not have more say in how the CEO is compensated when they are waiting around for planes that should have been delivered years ago.

    •  This is what always gets me... (7+ / 0-)

      Here's what happens.

      You pay the CEO enough money so that he doesn't need to work another day in his life & will live comfortably.

      So, the CEO is incentivized to make reckless gambles. If they pay-off, he does incredibly well. If they don't? No worries, he just walks away.

      If he feels like it, 5 years later he & his buddies rewrite history and convince another board of directors to hire him because he's experiened, etc.

      Put another way - when you pay a CEO enough to live 5 lifetimes in opulence, they have no skin in the game.

      Freedom isn't free. So quit whining and pay your taxes.

      by walk2live on Fri Jan 18, 2013 at 01:32:51 PM PST

      [ Parent ]

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