Tag: Boeing

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Compliance Into the Weeds

Compliance into the Weeds: The Boeing Plea Agreement – Questions, Questions, Questions

The award winning, Compliance into the Weeds is the only weekly podcast which takes a deep dive into a compliance related topic, literally going into the weeds to more fully explore a subject.

Looking for some hard-hitting insights on compliance? Look no further than Compliance into the Weeds!

In this episode Tom Fox and Matt Kelly take a deep dive into the Plea Agreement filed by the DOJ in the Boeing criminal case.

Today we delve into the proposed plea agreement between the Department of Justice and Boeing, following violations of the company’s 2021 Deferred Prosecution Agreement (DPA). We discuss the detailed aspects of the plea, including a $243 million criminal penalty, a $455 million compliance investment plan, a three-year prosecutor probation with a compliance monitor, and a unique interaction between Boeing’s board and the families of crash victims.

Matt and Tom also explore Boeing’s obligations to integrate safety and quality programs with its ethics and compliance initiatives, and the implications of these stringent new requirements.

Key Highlights:

  • Boeing’s Compliance and Safety Issues
  • Expansion of Corporate Compliance Role
  • Implications for Boeing’s Compliance Culture
  • Monitor, Oversight, and Victim’s Families
  • Role of the Board and Compliance Spending
  • Future Considerations and CCO Certification

Resources:

Matt in Radical Compliance

Tom in the FCPA Compliance and Ethics Blog

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Blog

The Proposed Boeing Deal: Part 1 – The Monitorship and Meeting Victims’ Families

The Department of Justice (DOJ) has filed its Plea Agreement in the wake of the Boeing guilty plea. Due to Boeing’s legal challenges, some probation conditions have been imposed to ensure the company adheres to enhanced compliance and safety standards. Over the next few blog posts, I will consider this Plea Agreement, whether it fits the unique situation, and whether it will ensure that Boeing can move forward out of its miasma and the dysfunctional culture at the company. In Part 1, I begin by considering some of these critical conditions around the Monitor, the proposed Monitorship, and the treatment of the victims’ families of the two 737 Max crashes.

Retention of an Independent Compliance Monitor

One condition of Boeing’s probation is the mandatory retention of an Independent Compliance Monitor. This role is compulsory for overseeing Boeing’s compliance efforts, though it’s important to note that the Monitor’s oversight is limited to the activities prescribed in Paragraph 7(j) of the agreement. Perhaps most notably, the DOJ says that the Court will have DOJ no role in the Monitor selection or Monitor oversight. The Monitor will report directly to the DOJ rather than the Court or other independent body, ensuring a lack of transparency.

The Monitor’s responsibilities, selection process, and scope of duties are outlined in Paragraphs 29-37 and Attachment D of the agreement. This setup is designed to reinforce the independence and effectiveness of the compliance oversight. Somewhat counter-intuitively, Boeing’s adherence to the Monitor’s recommendations is not a direct condition of probation, underscoring the Monitor’s role as an independent entity focused on oversight rather than enforcement while at the same time lessening the overall incentives for Boeing to comply with the Monitor’s recommendations.

Safety and Compliance Investment

Boeing must invest at least $455 million in its compliance, safety, and quality programs over probation. This investment represents a 75% increase over the company’s planned expenditures for fiscal year 2024, reflecting that Boeing must commit to elevating compliance standards and then make that investment.

This financial commitment is intended to support internal improvements and implement recommendations from the Independent Compliance Monitor. However, it does not cover the Monitor’s fees and costs, ensuring the funds are dedicated to genuine compliance and safety enhancements. Boeing must periodically, at least annually, provide proof of these investments to the overseeing offices and the Probation Office, ensuring transparency and accountability.

Engagement with Crash Victim Families

In a move no doubt aimed at the families of the two 737 MAX crash victims’,  one of Boeing’s probation conditions includes a mandatory meeting between its Board of Directors and the families of the victims of crashes involving Boeing aircraft. This meeting must occur within four months of sentencing and aims to provide a platform for the families to convey the impact of Boeing’s conduct and offer recommendations for improving the company’s compliance, safety, and quality programs.

Translation Services: Boeing must arrange and pay for interpreters, if needed, covering languages such as Amharic, Bahasa, French, German, Mandarin, and Norwegian.

In-person Attendance: At least 80% of Boeing’s Board members are required to attend in person, although virtual attendance is allowed for those outside the U.S.

Confirmation of Meeting: Within three business days of the meeting, Boeing must confirm with the overseeing and probation offices that the meeting occurred.

You will note that nothing requires Boeing to pay for the travel and accommodations of the victims’ families to this meeting. Equally importantly, nothing requires Boeing to implement any of the victims’ families’ suggestions or recommendations. Given how poorly Boeing has treated the victims’ families and the lack of trust between the parties, it is challenging to envision whether this initiative in the Plea Agreement will satisfy the victims’ families or if Boeing will take any of their recommendations seriously.

These probation conditions imposed on Boeing highlight the importance of independent oversight, significant investment in compliance infrastructure, and direct engagement with affected stakeholders in corporate compliance programs. However, the DOJ has not accepted the premise that it and Boeing need to ‘Go Big‘ in the Monitor or oversight process. What will the Court do with this DOJ approach? Perhaps, but given how this case has gone since the original Deferred Prosecution Agreement (DPA), the Court may want greater oversight, transparency, and a role in the future.

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10 For 10

10 For 10: Top Compliance Stories For The Week Ending July 27, 2024

Welcome to 10 For 10, the podcast which brings you the week’s Top 10 compliance stories in one podcast each week.

Tom Fox, the Voice of Compliance brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes hear about the stories every compliance professional should be aware of from the prior week.

Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

      • Crash victims’ families to oppose the new Boeing DPA. (Reuters)
      • Maersk pays $700K for wrongfully terminating a whistleblower. (WSJ)
      • CITGO prevails against bribery. (Reuters)
      • Senator Menendez submits his resignation. (Retuers)
      • Ohioans are still paying for FirstEnergy corruption. (Ohio Capital Journal)
      • Jho Low must return Mother’s diamonds.   (Bloomberg)
      • Navy corruption cases and COIs. (WaPo)
      • Meta tells the EU not to regulate us. (FT)
      • Delta is under investigation.   (NYT)
      • Is the doctor’s GTE registry working? (WSJ)

For more information on Ethico and a free White Paper on top compliance issues in 2024, click here.

You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.

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The Omnibus Monitor for Boeing: Representing all Stakeholders

In probably a move that will surprise no one, the families of the victims of the two Boeing 737 MAX crashes have objected to the Department of Justice’s (DOJ) announced approach to a monitorship for Boeing. Having been so badly mistreated by Boeing and then the DOJ, it is hardly unexpected that these families would find the DOJ’s announced approach unacceptable. In an article in the Financial Times, Claire Bushy reported that the DOJ announced that it would solicit proposals and then “pick from among them “with feedback from Boeing,” with the court having 10 days to object to the department’s choice.”

The victims’ families vehemently objected with comments such as those from “Javier de Luis, an aeronautics professor at the Massachusetts Institute of Technology whose sister was killed in the second Max crash, [who] said the justice department’s proposed process to choose a monitor is essentially Boeing “picking its probation officer.” “Giving Boeing a say as to who is responsible for monitoring them goes against first principles for how justice is done,” he said.” The article also noted that “the families want Judge Reed O’Connor to select the monitor, said Erin Applebaum, one of the lawyers on the case. They would like the judge to consider names they suggest but believe anyone picked by the court would do a better job than a choice from the DoJ and Boeing.”

As I have previously noted, the traditional DOJ approach to a Boeing monitorship needs to be rethought entirely. A standard monitorship involves the appointment of an independent monitor who oversees the company’s compliance with legal and regulatory requirements. This oversight ensures that the company adheres to the terms of its settlement and implements necessary reforms. The monitor acts as an impartial third party, reporting to the DOJ on the company’s progress and adherence to ethical standards. However, Boeing’s needs go far beyond ethics and compliance.

The DOJ needs to revise its approach to Boeing’s monitoring to consider all stakeholders’ interests. These include the US government, the victims’ families, the worldwide flying public, Boeing employees and suppliers, Boeing shareholders, and Boeing itself. The DOJ needs to create the most comprehensive monitoring plan ever used. Why? Because there has never been a corporate case more important to the United States than getting Boeing back on track. It is the approach I have dubbed the “Omnibus Monitorship.”

The reason is simple: we all want Boeing to get its remediation right. Boeing must turn around from a culture where employees fear stepping forward. There are acceptable slipshod work and work practices, where employees who do report problems are actively harassed, where employees lie and mislead federal regulators over fundamental safety issues, and where the almighty dollar is put so far above safety that hundreds of lives were lost. This means a monitorship where multiple areas are monitored, overseen, and thoroughly remediated to pass the most potent form of testing and controls at the end of a lengthy period (at least 3 years). The DOJ and Court need to stay actively involved in the monitoring, not simply reviewing annual claims but testing any claims by Boeing through rigorous data analytics. Boeing has demonstrated that it cannot turn itself around, and a new and daring approach is needed for the company.

The victim’s families have suggested reporting at one-month intervals or perhaps three-month intervals. While it may be difficult to see progress in 30 days, the victims’ families are right to demand real progress, real transparency, and, most importantly, real change at Boeing. This is where Boeing comes into the equation. Boeing must fully embrace the biggest, most comprehensive, and even most expensive monitorship ever.

One of the most significant benefits of this Omnibus Monitor approach would be restoring trust and credibility for Boeing. The 737 Max incidents have deeply tarnished Boeing’s reputation among regulators, the public, investors, and other stakeholders. Accepting this Omnibus Monitor would demonstrate a commitment to transparency and accountability, demonstrating that Boeing is willing to undergo rigorous scrutiny to regain its standing.

Transparency is a cornerstone of trust. By allowing this Omnibus Monitor to evaluate and report on its practices, Boeing can show that it has nothing to hide and is dedicated to making genuine improvements. This openness can help rebuild confidence among customers, suppliers, and the aviation community.

This Omnibus Monitor would have multiple monitors under it. A critical area where Boeing must improve is its internal culture. A monitor can play a pivotal role in this transformation of culture. The Culture Monitor can help Boeing develop a robust compliance program that prioritizes safety and ethical conduct by providing unbiased assessments and recommendations. An external perspective is invaluable in identifying blind spots and areas of resistance within the organization. Boeing has demonstrated that it cannot recognize and address deeply ingrained cultural issues. A Culture Monitor can provide the objectivity and expertise needed to drive meaningful change, ensuring that safety and compliance are ingrained in every aspect of Boeing’s operations.

The DOJ cannot take the usual approach to this Boeing Monitorship. It needs to not simply rethink its approach but incorporate the critiques of the victims’ families and the Court’s oversight role into this monitorship. A business-as-usual approach will not have the support or the strength to make the necessary changes.

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Daily Compliance News

Daily Compliance News: July 22, 2024 – The Victims’ Families Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

    • Boeing victims’ families object to the DOJ monitoring process. (FT)
    • The Zambian President fires the entire anti-corruption board.  (BBC)
    • Alaska judge scandal prompts referral to OIG. (Reuters)
    • MAGA states fight against national AML policies.  (WSJ)

 

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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10 For 10

10 For 10: Top Compliance Stories For The Week Ending July 13, 2024

Welcome to 10 For 10, the podcast that brings you the week’s top 10 compliance stories in one podcast each week.

Tom Fox, the Voice of Compliance, brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week.

Sit back, and in 10 minutes, hear about the stories every compliance professional should be aware of from the prior week.

Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for compliance professionals, all curated by the Voice of Compliance, Tom Fox.

Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

  • DOJ seeks to boost defense of TikTok divestiture law.  (Reuters)
  • The new normal of office life. (FT)
  • A former Indonesian minister was sentenced to 10 years for corruption. (ABCNews)
  • Archegos founder is guilty. (NYT)
  • In closing, Menendez lawyers say bars of gold are not evidence of bribery. (Reuters)
  • DOJ targets white collar crime via whistleblowers. (WaPo)
  • 2024 Tiger tally thru June 30. (South China Morning Post)
  • Boeing agrees to plead guilty to a felony count.  (NYT)
  • $50 billion in Medicare fraud has been unearthed. (WSJ)
  • Legal Fee Tracker: Billions on the line in fee fight over Musk’s pay (Reuters)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.

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Boeing: Accept the Omnibus Monitor Approach

I recently wrote a series of blog posts and articles on why the Department of Justice (DOJ) should think big and go big with a completely new approach to the monitorship for Boeing under its agreement to take a guilty plea. Now, I want to turn to Boeing and appeal to the company directly, not to fight the biggest monitorship ever, but to embrace and use this opportunity to rebuild the company, in all aspects, literally from the ground up. Boeing is broken, and now it is facing a guilty charge. Boeing must not fight the monitorship or its scope in any way, shape, or form.

The interests involved with Boeing are too great, and too much is at stake for Boeing. This is not a situation where a company can focus on its shareholders. The framework from Business Roundtable’s Statement on the Purpose of a Corporation seems particularly useful here as there are multiple interests at stake with Boeing. Shareholders are interested in a viable, ongoing, profitable corporation, but if Boeing takes the steps outlined in this piece, the profits will be forthcoming and substantive. There are Boeing’s customers, Boeing’s suppliers, Boeing’s employees, and those localities where Boeing has factories, partners, and third-party relationships.

Start with the customers of Boeing. While there are direct relationships with airline carriers, I argue that the customers of Boeing should extend to those of us in the flying public. Nearly 200 million Americans flew domestically in 2023, and probably 90% flew on a Boeing jet. What about suppliers and localities doing business with and for Boeing? In 2023, Boeing is estimated to have generated over $77bn in revenue for America alone. The employees of Boeing are the biggest group of supporters of the company and the most significant source of information about what is wrong with the company and how to fix it. Yet this is an entirely untapped resource for Boeing as it has become clear as whistleblower after whistleblower has come publicly forward after literally beating their heads internally trying to raise their hands and speak up.

A standard monitorship involves the appointment of an independent monitor who oversees the company’s compliance with legal and regulatory requirements. This oversight ensures that the company adheres to the terms of its settlement and implements necessary reforms. The monitor acts as an impartial third party, reporting to the DOJ on the company’s progress and adherence to ethical standards.

But here, I have proposed a much bigger monitorship that Boeing should fully embrace. I have urged the DOJ to appoint an Omnibus Monitor to oversee multiple monitors in specific subject matter areas. This would be far too big for any law firm or consulting company. The Omnibus Monitor would be in charge of a wide variety of corporate disciplines that Boeing must get right out of the terrible corporate fix they find themselves in. What are some of the areas that should have their monitorship under an Omnibus Monitor? Safety is at the core, but so is culture, compliance, Speak Up and Listen Up, supply chain, fraud, export control, and sanctions. The DOJ needs to work with the Federal Aviation Authority (FAA) to oversee all aircraft manufacturing issues to meet the FAA regulatory requirements.

One of the most significant benefits of this Omnibus Monitor approach would be restoring trust and credibility for Boeing. The 737 Max incidents have deeply tarnished Boeing’s reputation among regulators, the public, investors, and other stakeholders. Accepting this Omnibus Monitor would demonstrate a commitment to transparency and accountability, demonstrating that Boeing is willing to undergo rigorous scrutiny to regain its standing.

Transparency is a cornerstone of trust. By allowing this Omnibus Monitor to evaluate and report on its practices, Boeing can show that it has nothing to hide and is dedicated to making genuine improvements. This openness can help rebuild confidence among customers, suppliers, and the aviation community.

As I noted, this Omnibus Monitor would have multiple monitors under it. A critical area where Boeing must improve is its internal culture. A monitor can play a pivotal role in this transformation of culture. The monitor can help Boeing develop a robust compliance program that prioritizes safety and ethical conduct by providing unbiased assessments and recommendations. An external perspective is invaluable in identifying blind spots and areas of resistance within the organization. Boeing has demonstrated that it cannot recognize and address deeply ingrained cultural issues. A monitor can provide the objectivity and expertise needed to drive meaningful change, ensuring safety and compliance are ingrained in every aspect of Boeing’s operations.

It is time for Boeing to step up and repair its relationships with regulators, from the FAA to the DOJ and all those regulatory bodies. Once again, Boeing has a terrible relationship with the regulators, and an Omnibus Monitor demonstrates a willingness to cooperate fully with the DOJ and other regulatory authorities. This goodwill can benefit the current settlement and any future interactions with regulators. By embracing this Omnibus Monitor approach, Boeing can show that it is taking its obligations seriously and is committed to rectifying past mistakes. This proactive approach can lead to more favorable settlement terms and potentially reduce the severity of any future penalties.

Implementing lasting reforms across the entire organization requires more than internal efforts; it requires sustained oversight and accountability. This Omnibus Monitor approach provides a structured framework for Boeing to follow, ensuring that reforms are implemented and maintained over time. The monitor’s periodic evaluations and reports create a continuous feedback loop, allowing Boeing to make necessary adjustments and improvements. This structured oversight will hopefully prevent the recurrence of past issues and promote a culture of constant improvement. It ensures that Boeing’s commitment to safety and compliance does not wane once the immediate scrutiny is lifted.

Shareholders and investors are all a part of this discussion as well. Investor confidence is crucial for any publicly traded company. The 737 Max crisis has shaken investor faith in Boeing. Embracing a monitorship can help reassure investors that Boeing is committed to addressing the root causes of its problems and is on a path to recovery. Investors seek stability and transparency. By accepting this Omnibus Monitor approach, Boeing can ensure that it is taking concrete steps to mitigate risks and enhance its governance practices. This reassurance can stabilize stock prices and restore investor confidence, which is essential for the company’s long-term financial health.

Boeing is not just any company; the US is the leader in the aerospace industry. It is one of the two biggest airplane manufacturers in the world. Its actions set precedents and influence industry standards literally on a worldwide basis. By willingly accepting this Omnibus Monitor approach, Boeing can set a positive example in the industry. Boeing can demonstrate that even the largest and most established companies are not above accountability and can benefit from external oversight. This leadership can have a ripple effect, encouraging other companies to prioritize safety, compliance, and ethical conduct. It can contribute to raising the overall standards of the aerospace industry, benefiting the entire ecosystem, including passengers, regulators, and competitors.

In conclusion, while the prospect of this Omnibus Monitor approach might initially appear daunting, it is, in fact, a powerful tool for Boeing to embrace. The benefits of restoring trust, enhancing compliance and safety culture, demonstrating good faith to regulators, facilitating lasting reforms, reassuring investors, and setting a positive industry example far outweigh the perceived burdens.

Boeing’s journey toward redemption and sustainable success hinges on its willingness to accept responsibility and make genuine improvements. By embracing this Omnibus Monitor approach as part of its settlement with the DOJ, Boeing can take a significant step forward in rebuilding its reputation and ensuring a safer, more ethical future for itself and the aerospace industry.

Embracing this oversight is not a sign of weakness but a testament to Boeing’s commitment to excellence and accountability. It is a strategic move that can pave the way for a brighter and more responsible future, reaffirming Boeing’s position as a leader in the aerospace industry.

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2 Gurus Talk Compliance

2 Gurus Talk Compliance: Episode 32 — Shout Out to CCI

What happens when two top compliance commentators get together? They talk compliance, of course. Join Tom Fox and Kristy Grant-Hart in 2 Gurus Talk Compliance as they discuss the latest compliance issues in this week’s episode!

In this episode of 2 Gurus Talk Compliance Podcast, hosts Kristy Grant-Hart and Tom Fox discuss major developments in the compliance world. The topics include the potential scope of Boeing’s monitorship related to the 737 MAX crashes, Italian raids on luxury brand manufacturers for modern slavery violations, insights from the year’s biggest risk assessment survey, and Florida man’s futile gun battle with a Walmart drone. Additionally, they delve into articles from Corporate Compliance Insights on well-being washing, Supreme Court’s rollback of Chevron deference, trade sanctions screening, effective use of AI in compliance, and the importance of regulating ephemeral messaging. The episode concludes with an entertaining Florida man story involving a shootout with a drone.

Stories Include:

  • To the DOJ: Go Big on Boeing. (CCI)
  •  Well-Being Washing (it’s a real thing). (CCI)
  •  Upgrading TPRM in the age of AI. (CCI)
  • Sanctioned or not? (CCI)
  • International Comms Compliance. (CCI)
  • Raids Find Luxury Handbags Being Made by Exploited Workers in Italy (WSJ)
  • Supreme Court Overrules Chevron, Sharply Limiting Judicial Deference To Agencies’ Statutory Interpretation (Gibson Dunn)
  • 2024 State of Risk & Compliance Report (NAVEX)
  • Is work taking over your life? Here’s how to reclaim your time. (WaPo)
  • A Florida man’s futile gun battle with a Walmart drone. (Fortune)

Resources:

Kristy Grant-Hart on LinkedIn

Spark Consulting

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Daily Compliance News

Daily Compliance News: July 9, 2024 – The Boeing Pleads Guilty Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

In today’s edition of Daily Compliance News:

  • Boeing agrees to plead guilty to a felony count.  (NYT)
  • $50bn Medicare fraud unearthed. (WSJ)
  • Tesla shareholder’s lawyer argues for a $7 billion fee award in the Musk pay case. (Reuters)
  • Final arguments in the Menendez case. (Bloomberg)

For more information on the Ethico ROI Calculator and a free White Paper on the ROI of Compliance, click here.

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Blog

To the DOJ: Think Big and Go Big on the Boeing Monitorship

Perhaps the most significant blog post in the compliance arena was penned by Matt Ellis over 10 years ago when he challenged Walmart to “Go Big” on compliance. (They did.) We are now at another inflection point in compliance but in a very different set of circumstances from Walmart’s breach of the Foreign Corrupt Practices Act (FCPA). It involves the Department of Justice  (DOJ) and its decision on what to do about Boeing Company under the current Deferred Prosecution Agreement (DPA) from the 737 MAX crashes. Today I want to challenge the DOJ to Think Big and Go Big in its approach to dealing with Boeing going forward.

The issue the DOJ is grappling with is whether and how to get Boeing to fix the festering set of problems which led to the 737 MAX disasters and cultural toxicity have continued unabated since the DPA was agreed to by Boeing back in 2021. In May of this year, the DOJ notified Boeing that it was in breach of this DPA for failing “to design, implement, and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws throughout its operations.” Now the DOJ is determining the steps to take.

The families of the victims of the 737 MAX crashes have been the loudest about the need to punish Boeing executives with criminal charges. They met with the DOJ and asked about criminal charges and a massive penalty. Now the DOJ has responded. According to the Wall Street Journal (WSJ), “Under the guilty-plea agreement outlined Sunday to families of the crash victims, Boeing would have to agree to hire an outside consultant to monitor its compliance with safety regulations. It also would pay an additional corporate penalty of about $243 million.”

It is the ‘outside consultant’ where the DOJ needs to ‘Go Big.’ How? By creating the most comprehensive monitoring plan ever used. Why? Because there has never been a corporate case more important to the United States than getting Boeing back on track. This is not a FCPA case where a company has admitted to bribery and corruption, even across the globe. This is not 2008 when banks were ‘too big to fail’. This is something completely different. This is the only major US aircraft manufacturer and one of the two biggest in the world. This is a company that provides products for nearly half of all American as Airlines for Americaestimates that 49% of all Americans flew commercially in 2023. Boeing is estimated to have generated over $77bn in revenue for America alone in 2023.

But Boeing’s importance to America is not simply about economics. Boeing is a key component in US national security. Boeing provides advanced missile defense systems, including the Ground-based Midcourse Defense (GMD) system, which protects the United States from ballistic missile attacks. The company also offers solutions for tracking and monitoring space objects, which is vital for maintaining the safety and security of space operations. Boeing is also a part of the Internal Space Station (ISS), orbital test vehicles and deep space exploration.

In short, there is probably no other single institution as important to the US in manufacturing as Boeing. Nearly 200 million American who fly in Boeing planes are depending on Boeing to get it right. The US (and world) economy need the drive that Boeing provides. The US national security depends on a well-functioning Boeing to lead the technological drive to protect the US for the rest of the 21st century and beyond. Boeing needs to continue its work for our drive as humans into what Gene Roddenberry called ‘space – the final frontier’ as one of the leading companies on space exploration. Finally, and certainly not least, the families of the victims of the two 737 MAX crashes should receive some justice for all they have been through and then seeing Boeing not live up to its agreement in the original DPA.

Most importantly, we all have an interest in Boeing getting its remediation right. Boeing must turn around from a culture where employees are afraid to step forward, there is acceptable slipshod work and work practices, where employees who do report problems are actively harassed, where employees lie and mislead federal regulators over basic safety issues and where the almighty dollar is put so far above safety that literally hundreds of lives are lost. All of this means a monitorship where there are multiple areas monitored, overseen and thoroughly remediated so that they pass the strongest form of testing and controls at the end of a lengthy period (at least 3 years). The Court also needs to stay actively involved in the monitorship, not simply reviewing annual or even greater reporting but testing any claims by Boeing through rigorous data analytics. Boeing has clearly demonstrated it is not capable of turning itself around and a new and daring approach is needed for the company.

I believe the DOJ should appoint an Omnibus Monitor who would oversee multiple monitors in specific subject matter areas. This would be far too big for any one law firm or a single consulting company. The Omnibus Monitor would be in charge of a wide variety of corporate disciplines that Boeing must get right to get out of the terrible corporate fix they find themselves in. What are some of the areas that should have their own monitorship under an Omnibus Monitor? Obviously, safety is at the core but also culture, compliance, Speak Up and Listen Up, Supply Chain, fraud, Export Control, Sanctions. On the overall aircraft manufacturing issues, the DOJ needs to work with the Federal Aviation Authority (FAA) to oversee all of this to meet the FAA regulatory requirements.

This would be by far the biggest monitorship ever because it is by far the most important monitorship ever. Just as Ellis challenged Walmart to ‘go big’ on compliance, I want the DOJ to Think Big and Go Big with an Omnibus Monitor for Boeing. Literally all of America and the world is depending on it.