Boeing’s reputation is probably at an all-time low, as we increasingly learn about the corners that the company has cut in order to maximize profits, at the cost of safety. Not only is Boeing’s reputation bad, but the company is also facing increased regulatory scrutiny over its production practices, to ensure that things improve.
It’s clear that something major needs to change at Boeing, so as part of that, the company has just announced a complete overhaul of its management team.
Boeing CEO & Board Chair step down
Boeing has just revealed a series of management changes at the company. Boeing’s CEO, the Board Chair, and the CEO of the commercial airplanes division, will all be stepping down from their roles:
- Boeing CEO David Calhoun will step down at the end of 2024; he’ll continue working at the company until then, “to complete the critical work underway to stabilize and position the company for the future”
- Boeing Commercial Airplanes CEO Stan Deal will retire effective immediately, and will be replaced by Stephanie Pope; she has been Boeing’s Chief Operating Officer since January 2024, and prior to that, she was CEO of Boeing Global Services, offering aerospace services for commercial, government, and aviation industry customers
- Boeing Board Chair Larry Kellner (yes, the former Continental CEO/safety video guy) has informed the board that he does not intend to stand for re-election at the upcoming annual shareholder meeting
- Boeing’s Board has elected Steve Mollenkopf to succeed Kellner as Board Chair, and he’ll lead the effort to find a new CEO for the company
Here’s what current Boeing CEO David Calhoun had to say to employees about his plans to leave the company:
“It has been the greatest privilege of my life to serve Boeing. 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.”
Here’s what current Boeing Board Chair Larry Kellner had to say to employees about his plans to not seek re-election:
“Boeing plays an essential role in our world, and serving this company, and our people, has been a true honor. After over a decade on the board and several years as its chair, I have been considering the right time for a transition of leadership on our board, and have been discussing that subject with Dave and the board in conjunction with Dave’s own planning about his succession timeframe. I want to thank Dave for his tremendous leadership of our company, and I know he will finish the job this year that he started in 2020 to position Boeing, and our employees, for a stronger future. With Dave’s decision to step down as CEO at the end of this year, now is the right time for a transition to my successor. Steve is the ideal next leader to take on the role of board chair, and it is important that the CEO selection process be led by a new chair who will stay at the helm as a partner to the new CEO. With a strong board, an excellent management team and 170,000 dedicated Boeing employees, I am fully confident in our company’s future.”
This is a step in the right direction for Boeing
I don’t think anyone is surprised to see a complete shakeup of management at Boeing, given the situation the company is in. This is a great first step, but the real test will be seeing if there’s actually a culture change at Boeing.
The problems at Boeing go way beyond the current CEO and Board Chair. By all accounts, Boeing’s focus on profits over safety has gotten progressively worse over decades, rather than just over a few years. I think replacing the current management team was necessary, but it’s not the solution in and of itself.
Part of the problem is that publicly traded companies in the United States are so focused on short term stock price rather than looking at the long term. The way that senior executives act understandably reflects their incentives, which often aren’t aligned with a company’s long term goals. A turnaround at Boeing will require a lot of effort, so good luck to the new management team.
Bottom line
Boeing’s CEO, Boeing’s Board Chair, and Boeing’s CEO of Commercial Airplanes, are all stepping down from their roles. This is a drastic but necessary development, given the situation Boeing is in. Here’s to hoping that the new people in charge are actually committed to making changes, rather than just doing the same old thing…
What do you make of the changes to Boeing’s leadership team?
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