Boeing is undergoing a significant leadership transition, with CEO Dave Calhoun set to step down by the end of 2024 as part of a broader restructuring within the company. Larry Kellner, the current chairman of the board, will not seek reelection at the upcoming annual meeting in May. He will be succeeded by Steve Mollenkopf, a Boeing director since 2020 and former CEO of Qualcomm, who will oversee the selection of a new CEO.
Simultaneously, Stan Deal, the president and CEO of Boeing’s commercial airplanes unit, is departing the company with immediate effect. Stephanie Pope, who recently assumed the role of Boeing’s Chief Operating Officer and previously led Boeing Global Services, will take over Deal’s responsibilities.
These changes come in response to mounting pressure from airlines and regulators for significant reforms at Boeing following a series of quality and manufacturing issues impacting Boeing aircraft. The scrutiny amplified following an incident on January 5 involving a Boeing 737 Max during an Alaska Airlines flight.
In a message to employees, Calhoun acknowledged the challenges faced by Boeing and emphasized the company’s commitment to transparency, safety, and quality. He expressed confidence that Boeing would emerge stronger by embracing necessary changes and enhancements across its operations.
Having been a board member at Boeing for over a decade, Calhoun assumed the CEO position in January 2020, succeeding the previous CEO Dennis Muilenburg. He has been vocal about Boeing’s efforts to address quality shortcomings, with the Federal Aviation Administration intensifying its oversight.
Calhoun stressed the importance of addressing production issues, ensuring quality control, and aligning with the requirements of regulatory authorities. The production challenges have resulted in delivery delays and growth impediments, prompting concerns from major customers like United Airlines, Southwest Airlines, and American Airlines.
The recent management changes have received a mixed reception, with some stakeholders, such as Ryanair CEO Michael O’Leary, expressing optimism about the shift in leadership. Boeing continues to navigate challenges related to 737 Max production, with ongoing discussions between airline CEOs and Boeing directors regarding manufacturing quality and supply chain issues.
Despite facing financial pressures and stock value fluctuations, Boeing remains focused on implementing necessary measures to address its operational shortcomings, restore customer confidence, and drive sustainable growth in the aviation industry.
