Glass Lewis recommends vote against two Spirit Aero directors
Reuters
Published Apr 04, 2024 11:56AM ET
Updated Apr 04, 2024 03:12PM ET
By Abhijith Ganapavaram
(Reuters) -Proxy advisory firm Glass Lewis has recommended that Spirit AeroSystems (NYSE:SPR) shareholders vote against the election of two directors, including the head of the aero parts supplier's risk committee, Ronald Kadish, at next month's annual meeting.
Spirit and its biggest customer Boeing (NYSE:BA) have come under regulatory and investor scrutiny following a Jan. 5 mid-air cabin panel blowout on a Boeing 737 MAX 9 jet, the fuselage for which was made by Spirit.
The Federal Aviation Administration said last month its 737 MAX production audit found multiple instances where both companies allegedly failed to comply with manufacturing quality control requirements.
"We believe that the investigations since the incident, particularly the results of the FAA's audit, have indicated questionable oversight and management of safety and related risks by the company," Glass Lewis said in its report.
"Accordingly, we do not believe that the board, and in particular the risk committee, has appropriately addressed potential shareholder concern" regarding safety, legal and regulatory risks, Glass Lewis said.
Spirit Aero spokesperson Joe Buccino said the company was continuing with "multiple comprehensive and proactive efforts to improve our safety and quality."
"Our goal is zero defects - perfection across all operations," Buccino said in an emailed comment.
Kadish, 75, has been a director at Spirit since 2006.
He has held various government and corporate positions in the aerospace and defense industry, including as director of the U.S. Missile Defense Agency between 2002 and 2004 and executive vice president at military contractor Booz Allen (NYSE:BAH) Hamilton between 2005 and 2015.
Glass Lewis also advised shareholders to vote against the election of Laura Wright, chair of Spirit's governance committee, citing insufficient efforts at improving board diversity.
Spirit's annual meeting is due on April 24. The company has nominated 10 independent directors and CEO Patrick Shanahan to serve on its board.
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Written By: Reuters
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