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Discussion on: Boeing's 737 Max Software Outsourced to $9-an-Hour Engineers

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Luke Westby

Gotta maximize that return to shareholders, am I right?

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Adrian Sandu Author

I think the current scandal and the loss of both face and share value might be more than the savings done with that outsourcing move. It's a shortsighted approach where decision makers are only interested in making the numbers at the end of the quarter or the end of the year, instead of planning long term.

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Luke Westby

Oh for sure! I was just making a sarcastic comment about how shareholder value theory leads to practices like this which ultimately undermine its stated purpose

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Adrian Sandu Author

It's actually an issue with the entire business model. The CEO and other decision-makers in companies get their big fat checks based on the margins they managed to achieve at the end of the year. Is anyone paying for these issues? I don't remember reading about Boeing giving compensation for the families of the people who died because they cheaped up on making the planes.