Boeing CEO Dave Calhoun steps down amid executive overhaul
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The news: CEO of Boeing, Dave Calhoun, will step down at the end of 2024, as the embattled aircraft maker launches an executive reshuffle in the wake of a mid-flight cabin door blow-out in January.
The numbers: Shares in Boeing were up 4% during early trading on Monday, having tumbled 28% since the beginning of the year.
The context: Since the 737-Max 9 incident in January, Boeing has being dealing with the fallout of regulatory investigations into its safety and quality assurance practices, as well as the grounding of its planes and a streak of smaller incidents that have exacerbated scrutiny on the company.
In addition to Calhoun, board chair Larry Kellner has notified the board that he does not intend to stand for re-election at the upcoming annual shareholder meeting. Steve Mollenkopf has been appointed the new chair in Kellner’s place.
Boeing’s commercial airplanes president and CEO, Stan Deal, will also retire from the company, with the current chief operating officer, Stephanie Pope, taking on his role.
What they said: In a letter to employees, Calhoun wrote: “I have been considering for some time, in discussion with our board of directors, the right time for a CEO transition at Boeing. I want to share with you that I have decided this will be my last year as CEO of our great company, and I have notified the board of that decision.”
Referring to the January Alaska Airlines incident as a watershed moment for Boeing, Calhoun added: “The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years.”
The sources: Boeing press release, Dave Calhoun CEO letter to employees
