It’s time for another depressing story about Boeing, and by extension, a lot of other American institutions that are being wrecked by the capitalist mindset. The situation at Boeing has been going downhill for years.
But Swampy [the nickname for John Barnett, a whistleblower] was mired in an institution that was in a perpetual state of unlearning all the lessons it had absorbed over a 90-year ascent to the pinnacle of global manufacturing. Like most neoliberal institutions, Boeing had come under the spell of a seductive new theory of “knowledge” that essentially reduced the whole concept to a combination of intellectual property, trade secrets, and data, discarding “thought” and “understanding” and “complex reasoning” possessed by a skilled and experienced workforce as essentially not worth the increased health care costs. CEO Jim McNerney, who joined Boeing in 2005, had last helmed 3M, where management as he saw it had “overvalued experience and undervalued leadership” before he purged the veterans into early retirement.
I’m seeing the same thing in the university system: we’ve got MBAs telling us that the universities should discard “thought” and “understanding” and “complex reasoning” and become vocational schools that churn out degrees. The scary twist is that now the same incompetents who got us in this mess are not blaming their own stupid goal-directed approach — the new scapegoat is “DEI,” which is actually beneficial and enables the kind of new perspective that might help us out.
But Boeing is screwed. It’s run by idiots who tout “leadership” but don’t know how to do the job of an aircraft manufacturer. How can you overvalue experience?
“Prince Jim”—as some long-timers used to call him—repeatedly invoked a slur for longtime engineers and skilled machinists in the obligatory vanity “leadership” book he co-wrote. Those who cared too much about the integrity of the planes and not enough about the stock price were “phenomenally talented assholes,” and he encouraged his deputies to ostracize them into leaving the company. He initially refused to let nearly any of these talented assholes work on the 787 Dreamliner, instead outsourcing the vast majority of the development and engineering design of the brand-new, revolutionary wide-body jet to suppliers, many of which lacked engineering departments. The plan would save money while busting unions, a win-win, he promised investors. Instead, McNerney’s plan burned some $50 billion in excess of its budget and went three and a half years behind schedule.
The focus on stock price, as if it’s a meaningful metric of the value of a company (a metric further eroded by stock buybacks) has not been a win-win. It’s been a disaster. They are currently losing tens of millions of dollars on each 787 they build, and their reputation is so bad they’re unsellable.
There’s a terrifying visual representation of this: the satellite view of the Moses Lake Municipal Airport in an arid stretch of Washington east of Seattle, or the Southern California Logistics Airport in Victorville, California, where hundreds of Boeing 737 MAXes sit in abandoned parking lots waiting for someone to fix them so they can finally be delivered. Meanwhile, pieces are flying off the Boeing planes actually in use at an alarming rate, criminal investigations are under way, and another in a long line of stock-conscious CEOs is stepping down. Boeing’s largest union, the Machinists, is trying to snag a board seat because, in the words of its local president, “we have to save this company from itself.”
The company is doomed, because the moneyed assholes have a deathgrip on “leadership.”
SPEEA [Society of Professional Engineering Employees in Aerospace ] has demanded, understandably, that the board choose an aerospace engineer as its next CEO. But there are few signs that will happen: None of the names floated thus far for the spot have been aerospace engineers, and the shoo-in for the position, GE’s Larry Culp, is not an engineer at all.
You might be wondering what kinds of penalties Jim McNerney suffered as a consequence of his catastrophic performance. Why, none at all, of course.
In 2007, as CEO of Boeing, W. James McNerney Jr. made $12,904,478 in total compensation, which included a base salary of $1,800,077, a cash bonus of $4,266,500, options granted of $5,871,650, and Other $966,251.
In 2008, his total compensation increased to $14,765,410, which included a base salary of $1,915,288, a cash bonus of $6,089,625, and options granted of $5,914,440.
In 2009, his total compensation decreased to $13,705,435, which included a base salary of $1,930,000, a cash bonus of $4,500,300, stock options granted of $3,136,251, stock granted of $3,136,242, and other compensation totaling $1,002,642.
In 2013, McNerney made $23.2 million in total compensation, which included a $1.9 million salary, $3.7 million stock award, $3.7 million stock option grant, and an annual incentive bonus of $12.8 million.
In 2014, as Chairman and CEO of Boeing, McNerney made $29 million in total compensation. Of the total: $2,004,231 was received as a salary; $14,400,000 was received as an annual bonus and a three-year performance bonus; $6,272,517 was awarded as stock (none was received in stock options); and other compensation totaling $760,000.
Meanwhile, John Barnett, the whistleblower and competent engineer, is dead. Something is wrong here.










