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Context: The Boeing 737 Max crisis highlighted the challenges companies face in balancing profitability and safety. Boeing's CEO, Dennis Muilenburg, resigned amidst the controversy, and
Context: The Boeing 737 Max crisis highlighted the challenges companies face in balancing profitability and safety. Boeing's CEO, Dennis Muilenburg, resigned amidst the controversy, and executive compensation was a focal point. Question: Analyze the Boeing case in the context of corporate governance. How did executive compensation structures impact decision-making and risk management within the company? What changes could be implemented in compensation practices to encourage a culture that prioritizes safety and ethical considerations over short-term financial gains? Discuss from the perspective of agency theory and the role of boards in ensuring responsible corporate behavior
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