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Boeing CEO Calhoun To Resign End Of 2024 As Company Faces Scrutiny And Quality Concerns

Boeing’s stock rose by 2% on Monday in response to the news of CEO Calhoun’s resignation.

Boeing chief executive David Calhoun

Boeing, the embattled aerospace giant, revealed a significant management shake-up with CEO Dave Calhoun set to step down at the end of 2024, marking a pivotal moment in the company’s leadership transition.

Chairman of the board Larry Kellner is also resigning, choosing not to stand for re-election at Boeing’s annual meeting in May. He will be succeeded by Steve Mollenkopf, who has served as a Boeing director since 2020. Mollenkopf will lead the board in selecting a new CEO, as stated by Boeing.

Also, in a swift change, Stan Deal, the president and CEO of Boeing Commercial Airplanes, is departing the company with immediate effect. Stepping into his role is Stephanie Pope, who recently assumed the position of Boeing’s chief operating officer after previously leading Boeing Global Services.

These departures coincide with mounting pressure from airlines and regulators, who have been calling for significant changes within Boeing following a series of quality and manufacturing issues. Scrutiny intensified after an incident on January 5th, when a door plug blew out of a nearly new Boeing 737 Max just 9 minutes into an Alaska Airlines flight.

Dave Calhoun addressed Boeing employees on Monday, acknowledging the gravity of the situation: “As you all know, the Alaska Airlines Flight 1282 accident was a watershed moment for Boeing.”

He emphasized the need for humility, transparency, and a renewed commitment to safety and quality across all levels of the company.

He went on to say, “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.”

In an interview with CNBC, Calhoun affirmed that his decision to resign was entirely his own. He was appointed CEO in late 2019 and took over leadership at Boeing in early 2020 after the departure of the previous CEO, Dennis Muilenburg, following his handling of the aftermath of two deadly 737 Max crashes.

Boeing has faced ongoing challenges with quality control, leading to delays in deliveries and growth plans. The Federal Aviation Administration has increased oversight of Boeing, with Administrator Mike Whitaker indicating that Boeing will be prohibited from increasing 737 productions until the FAA is satisfied with the company’s quality control measures.

The announcement of Calhoun’s resignation and the broader management shake-up saw Boeing’s stock rise by over 2% in early trading on Monday. However, the stock remains down by 27% year-to-date, reflecting the ongoing challenges facing the company.

Ozioma Samuel-Ugwuezi

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