After months of damaging revelations about quality issues at Boeing, the company announced a shakeup on Monday. CEO Dave Calhoun will step down at the end of 2024, while the head of Boeing’s commercial airplane division, Stan Deal, is also out. Stephanie Pope, who was promoted just four months ago to the position of chief operating officer, will replace Deal. Calhoun, who was appointed CEO in 2020 following a crisis over the quality of its airplanes, is stepping down amidst renewed doubts about the safety of Boeing aircraft, particularly after a recent incident involving an Alaska Airlines 737 MAX.
Investors have reportedly lost faith in Boeing management, prompting the board to make changes. Larry Kellner, the board chair, has also stepped down and will not run for reelection. Former CEO of Qualcomm, Steve Mollenkopf, has been elected to serve as chairman. The board is now tasked with finding a replacement for Calhoun, with many experts suggesting that the board may need to look outside the company for Boeing’s next CEO. Wall Street is hoping for someone with a strong operational background to restore investor confidence in Boeing’s manufacturing operations.
Several names have been discussed as potential candidates to replace Calhoun, including Lawrence Culp, David Gitlin, Pat Shanahan, Kathy Warden, Stephanie Pope, and Ed Bastian. Culp has been praised for his leadership at General Electric but may not want to start anew at Boeing. Gitlin has shown strong execution and strategy in his role at Carrier, while Shanahan’s background at Boeing makes him a strong candidate. Warden has experience overseeing various defense projects and could be well-suited to clean up Boeing’s troubled defense and space unit. Pope’s recent appointment as COO puts her in pole position to succeed Calhoun, but her background in finance may be a concern.
A wildcard candidate, Delta Air Lines CEO Ed Bastian, is widely respected for his leadership in turning Delta into a profitable and smoothly operating airline. However, his lack of experience in running a manufacturing business could be a hurdle. With the company facing pressure to comply with new manufacturing safety probes and demands from airlines to address grievances, the board faces the challenge of finding a suitable replacement for Calhoun. Experts agree that the next CEO will need a strong operational background to restore confidence in Boeing’s manufacturing operations.
