Former United States Ambassador to the United Nations, Nikki Haley, is stepping down from Boeing’s board of directors over the company’s decision to seek government aid.
In a statement on Thursday, Haley praised the “quality of the company” and the “excellence of the Boeing team and workforce.”
Additionally, she said she “appreciated” the “humility and transparency” of the company as it addressed its troubled 737 Max aircraft. However, she said she opposed the company’s decision to seek federal aid to help weather the expected financial downturn.
“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,” she added.
Nikki Haley resigns from Boeing board because she opposes a federal bailout.— Steve Kopack (@SteveKopack) March 19, 2020
“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.” pic.twitter.com/ngnGQWG79j
Haley vowed to remain a “strong supporter of Boeing and its workforce.”
Earlier this week, Boeing said that it would seek $60 billion in aid from the government to help it stay afloat as the coronavirus leads to large swaths of the economy shutting down.
“Funds would support the health of the broader aviation industry because much of any liquidity support to Boeing will be used for payments to suppliers to maintain the health of the supply chain,” the company said as it explained why it was seeking federal funds.
While some analysts argued Boeing does not need federal aid, CNBC’s Jim Cramer warned that the company would “run out of money.”
“We must save Boeing so to speak, both from the side that the airlines are going to get money, but if you don’t have maybe one of the, if not the most important, company in the country solvent, then I think a lot of things are going to go wrong,” he added.