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    Nikki Haley Resigns from Boeing Board in Protest of $60 Billion Bailout Request

    Nikki Haley Resigns from Boeing Board in Protest of $60 Billion Bailout Request

    “I cannot support a move to lean on the federal government for a stimulus or bailout that prioritizes our company over others and relies on taxpayers to guarantee our financial position. I have long held strong convictions that this is not the role of government.”

    Former U.N Ambassador and South Carolina Governor Nikki Haley has resigned form the Board of Directors of Boeing, in protest of Boeing’s request for a $60 billion federal government bailout.

    The following statement by Haley, dated March 16, 2020, was filed with the Securities and Exchange Commission as part of a Boeing filing:

    March 16, 2020

    To: Dave Calhoun, CEO
    Larry Kellner, Chairman of the Board
    Members of the Board

    I have had the pleasure of working with Boeing for almost ten years now. As South Carolina Governor I came to know the quality of the company, but more importantly, the excellence of the Boeing team and workforce. When I was asked to join the Board of Directors, there was no better team I could think of being a part of.

    As Boeing has gone through the difficulties of the MAX, I have appreciated the humility and transparency shown by the team to make sure that when the MAX is back in the air, it will be the safest, strongest plane ever flown.

    As we encounter the Covid-19 crisis, Boeing, along with many other companies, face another major set of challenges. I want to be part of helping the company as it pushes through it. However, the board and executive team are going in a direction I cannot support.

    While I know cash is tight, that is equally true for numerous other industries and for millions of small businesses. I cannot support a move to lean on the federal government for a stimulus or bailout that prioritizes our company over others and relies on taxpayers to guarantee our financial position. I have long held strong convictions that this is not the role of government.

    I strongly believe that when one is part of a team, and one cannot in good faith support the direction of the team, then the proper thing to do is to resign. As such, I hereby resign my position from the Boeing Board.

    I hope you all know that I will continue to be a strong supporter of Boeing and its workforce. All of you have taught me so much over the past year. Serving with each and every one of you has been a privilege. I value the friendships I have made with all of you.

    If I can ever be of help or service to the Boeing team in the future, please don’t hesitate to contact me.

    My very best,

    /s/ Nikki R. Haley

    Nikki R. Haley

    Boeing is in a different, and weaker, position than other companies and industries seeking federal assistance. Boeing already was suffering from the safety failures of its 737 Max 8 airplane. Boeing also spent over $40 billion on stock buybacks:

    Boeing’s free cash flow for 10 years totaled $58.37 billion, while the company spent $43.44 billion, or 74% of free cash flow, on stock repurchases.

    Yet Boeing also is a major employer and defense contractor.

    Compare that to the airlines and hotels, which were doing well but had their revenue stream stopped cold by the federal government. Those companies, having had their business models destroyed by the federal government arguably have a stronger claim to federal help.

    Regardless, this is a bold move by Haley.

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    Comments



     
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    healthguyfsu | March 20, 2020 at 10:36 am

    I actually have mixed feelings about Haley. She’s done the right thing for Americans many times and, on principle, she is right here (whether you like her other decisions or not). Bailouts are an Obama government tactic, and that’s why Trump is drawing all of this praise from strange bedfellows. That should be a huge red flag. Trump’s reasons are wholly different (protect his economic legacy amidst a fickle public reaction), but the ends do not justify the means.

    No, her ideology does not always fit mine, and I will shake my head in disgust at times. However, I’ve had the same thing with Graham, McConnell, et al. and I’d still vote for them over non-primary opposition if I lived in their districts.


     
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    healthguyfsu | March 20, 2020 at 10:38 am

    And Boeing is not even an airline…why are they more sensitive to the economic downturn than say AA, SWA, Delta, etc.?


       
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      Massinsanity in reply to healthguyfsu. | March 20, 2020 at 11:05 am

      Ummm… Because they are one of 2 companies world wide that supply the vast majority of airplanes to airlines around the world. When airlines stop flying what do you think happens to orders for new airplanes?

      Boeing is in trouble because of the gross mismanagement of Dennis Muilenburg a bean counter who oversaw the 737MAX debacle and the decision to borrow money to buy back stock leaving the company with a major debt problem.

      The board is also to blame for allowing Muilenburg to destroy the company. Haley was on the board so she is complicit.

      It’s hard to see this move as anything pure grandstanding. Show me where you voted against the buybacks Ms Haley and I might change my opinion.


     
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    OleDirtyBarrister | March 20, 2020 at 11:32 am

    She jumped on that easy money when she left her post to get ready for her next political step. She did not hesitate to ponder why Boeing would want her on the board and she had no reluctance in participating in the military industrial complex and making her contacts and rolodex available for the right price (board member compensation).

    Now that Boeing is looking like a failure, she is tacking and trying to distance herself before it became a liability on her political resume.

    She really has not done the that much or accomplished much, she is just an opportunist.


       
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      Ohio Historian in reply to OleDirtyBarrister. | March 22, 2020 at 4:52 pm

      I didn’t realize that a member of the Board of Directors was “easy money” unless it was to Barisma’s board. I guess that you have her confused with a coke-snortin’ opportunist named Hunter Biden. You got evidence to back up your snark?


     
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    molonlabe28 | March 20, 2020 at 3:45 pm

    I’m sorry I can’t help Ms. Haley in 2024.

    But I am already committed to Don, Jr.


     
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    Barry Soetoro | March 22, 2020 at 3:34 pm

    Looks like blatant virtue signaling to me.


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