Boeing’s (NYSE:BA) CEO, David Calhoun, will step down at the end of the year as part of a major management overhaul following a series of challenges at the aerospace giant. Stan Deal, the president and CEO of Boeing’s commercial airplanes unit, will retire immediately, while Stephanie Pope, the company’s chief operating officer for less than three months, has taken over leadership of the division.
The company also announced that board Chairman Lawrence Kellner will not stand for re-election in May and will be replaced by a former Qualcomm CEO.
Boeing has faced intense scrutiny since early January when a panel detached from a new Alaska Airlines 737 Max due to missing bolts after repair work at the Boeing factory. The Federal Aviation Administration has increased its oversight of the company, including placing a limit on production of 737s, and a recent FAA audit of Boeing’s 737 factory near Seattle found numerous production issues.
The fallout from these incidents, along with ongoing concerns related to the 2018 and 2019 crashes involving Boeing 737 Max jets, has led to increased pressure on the company. In a note to employees, Calhoun called the recent incident “a watershed moment for Boeing” and emphasized the company’s commitment to safety and quality.
To improve quality, Boeing is considering bringing key supplier Spirit AeroSystems, which builds fuselages for the Max, back into the company. Calhoun stated that talks with Spirit are progressing well.
Calhoun’s decision to step down was his own, and Boeing has chosen former Qualcomm CEO Steven Mollenkopf to lead the search for his replacement and become the new board chairman.
Analysts see the management shakeup as a positive step for Boeing, but the outcome will depend on the next CEO. Shares of Boeing rose about 1% following the announcement.
Featured Image: Freepik
Author Stephanie Bédard-Châteauneuf 
