Boeing CEO Dave Calhoun has announced he will step down from his position at the end of 2024, marking a significant leadership transition for the aerospace giant amid a tumultuous period highlighted by safety and manufacturing challenges. Calhoun’s decision is part of a broader management shakeup that includes the departures of other key executives.
As the company grapples with the fallout from a recent safety incident involving an Alaska Airlines flight, where a door plug blew out of a nearly new Boeing 737 Max 9, Calhoun expressed his commitment to addressing these issues with “humility and complete transparency.” In an internal memo to employees, Calhoun emphasized the importance of a “total commitment to safety and quality at every level of our company,” stating that “the eyes of the world are on us.”
The CEO transition comes after Boeing has faced “some of the most significant challenges our company and industry have ever faced in our 108-year history,” according to Calhoun. His tenure as CEO began in early 2020, following the ouster of former chief executive Dennis Muilenburg after two deadly 737 Max crashes. Under Calhoun’s leadership, Boeing has been working to recover from the grounding of the 737 Max and a pandemic-induced slump in travel.
“We have another mountain to climb,” Calhoun said. “Let’s not avoid the call for action. Let’s not avoid the changes that we have to make in our factory. Let’s not avoid the need to slow down a bit and let the supply chain catch up.”
Calhoun’s departure is part of a series of executive changes at Boeing. Stan Deal, President and CEO of Boeing Commercial Airplanes, has retired effective immediately, with Stephanie Pope stepping into the role. Larry Kellner, Chairman of the Board, is also resigning and will leave his position at Boeing’s annual meeting in May. Steve Mollenkopf, who has served as a Boeing director since 2020, has been appointed to replace Kellner as Chair.
The upcoming CEO selection process will be led by Mollenkopf, as Boeing aims to stabilize and position the company for future success. Calhoun expressed his confidence in Mollenkopf’s capabilities, citing his engineering background and experience as a former CEO of Qualcomm. He also acknowledged Kellner’s contributions, highlighting the enhanced governance under his leadership, which includes the establishment of Boeing’s independent standing board aerospace safety committee.
“How many times can ‘won’t happen again’ happen again?” Bank of America Corp. analyst Ronald Epstein wrote in a report in January. “Both Boeing and [Boeing parts supplier] Spirit [AeroSystems] need a drastic cultural overhaul. This cultural change won’t come from FAA mandates, congressional hearings, internal memos, or one-hour all hands meetings. For culture to move from corporate jargon to being embodied in the habits and minds of both workforces, we see it as necessary for Boeing and Spirit to drastically rethink the ways they have operated.”
Relevant articles:
– Boeing CEO is gone. Stock shoots up. Puts get blown-out of the fuselage.
– News Releases, MediaRoom – News Releases/Statements, Mon, 25 Mar 2024 12:00:23 GMT
– Boeing CEO, other executives stepping down amid safety crisis, NBC News, Mon, 25 Mar 2024 12:10:00 GMT
– Boeing CEO Dave Calhoun to step down, ABC News, Mon, 25 Mar 2024 12:51:11 GMT