The Boeing Company, founded by William Boeing over a century ago, is facing its worst crisis yet as it searches for its 13th CEO. The company has struggled through years of safety incidents and bad news that have raised doubts about the quality of its aircraft. Facing multiple federal investigations and customer outcry, Boeing has incurred losses of over $31 billion since 2019, with ongoing financial challenges and incidents like blown-out door plugs drawing unwanted attention. Current CEO Dave Calhoun’s decision to step down by the end of the year leaves the company searching for a new chief executive.
Boeing has a choice when picking a new CEO: someone with an engineering background that prioritizes safety and quality, or a leader with a financial background like Calhoun, who critics blame for the company’s current issues. Many believe that returning to Boeing’s engineering roots is crucial for the company’s future success. Calhoun emphasized the need for a CEO with experience in handling a complex, long-cycle business like Boeing, but did not reveal potential candidates or whether the search is focusing on internal or external options.
Potential CEO candidates include Pat Shanahan, known as “Mr. Fix It” for his problem-solving skills at Boeing and now CEO of Spirit AeroSystems. Shanahan’s appointment could occur if Boeing reacquires Spirit in the future. Larry Culp, who successfully turned around General Electric as CEO, and Kathy Warden, CEO of Northrop Grumman with significant success, are also considered strong candidates for the Boeing CEO position. Greg Smith, former Boeing CFO, could potentially bridge the gap between Boeing and its airline customers given his current role as chairman of American Airlines.
Internal candidates for Boeing’s CEO position include rising executives like Stephanie Pope, recently promoted to CEO of Boeing Commercial Airplanes, and CFO Brian West, both from finance backgrounds. Elizabeth Lund, senior vice president of quality at Boeing Commercial Airplanes, with an engineering background and experience with Boeing suppliers, is also a potential internal candidate. The Boeing board may favor outside candidates due to the need for significant cultural change within the company, following the challenges of the past five years and the desire to move away from an emphasis on financial results over engineering excellence.
