Boeing chief executive, board chair both stepping down

25th Mar 2024 12:18

(Sharecast News) - Boeing announced a series of changes within its board and management on Monday, with Dave Calhoun announcing his resignation, as the aerospace giant navigated turbulence around its 737 MAX product.

The company's president and CEO said he would resign from his role by the end of 2024, but would remain at the helm through the year to oversee Boeing's ongoing efforts to stabilise.

"It has been the greatest privilege of my life to serve Boeing," Calhoun said in a letter to employees.

"The eyes of the world are on us, and I know that we will come through this moment a better company.

"We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do."

Independent board chair Larry Kellner had also decided not to seek re-election at the upcoming annual shareholder meeting, marking the end of his 13-year tenure on the Boeing board.

Steve Mollenkopf, a board member since 2020 and former CEO of Qualcomm, had been appointed as the new chair, and would lead the search for Calhoun's successor.

"I am honoured and humbled to step into this new role," said Mollenkopf.

"I am fully confident in this company and its leadership - and together we are committed to taking the right actions to strengthen safety and quality, and to meet the needs of our customers.

"I also want to thank both Larry and Dave for their exceptional stewardship of Boeing during a challenging and consequential time for Boeing and the aerospace industry."

The company also announced the retirement of Stan Deal, the president and CEO of Boeing Commercial Airplanes, with Stephanie Pope, previously chief operating officer of Boeing, stepping into the role immediately.

It said Pope would bring a wealth of experience from positions across the company.

The changes came at a crucial time for Boeing, which had faced a series of challenges in recent years.

Two fatal crashes involving its 737 MAX led to a worldwide grounding and significant scrutiny of its safety practices and culture.

The 737 MAX returned to the skies nearly two years out of operation, but the 737 MAX-10 variant was recently grounded after a door plug panel blew out of an Alaska Airlines jet in January.

Early investigations suggested a lack of quality control in the manufacture of the panel was behind the incident.

At 0835 EDT (1235 GMT), shares in the Boeing Company were up 3.1% in premarket trading in New York, at $194.71.

Reporting by Josh White for Sharecast.com.