Boeing CEO Dave Calhoun to step down in management shake-up

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In a surprising move, Boeing CEO Dave Calhoun has announced that he will be stepping down from his position at the end of 2024, marking the end of a tumultuous era for the aerospace giant. This decision comes as part of a broader management shake-up at Boeing, with Chairman of the Board Larry Kellner also resigning and President and CEO of Boeing Commercial Airplanes Stan Deal leaving the company with immediate effect.

Taking over as the new chair of the board is Steve Mollenkopf, who has been a Boeing director since 2020. Stephanie Pope, who recently became Boeing’s Chief Operating Officer, will assume the role of President and CEO of Boeing Commercial Airplanes.

The departures of Calhoun, Kellner, and Deal come amid mounting pressure from airlines and regulators for major changes at Boeing following a series of quality and manufacturing flaws on Boeing planes. The scrutiny reached a fever pitch after a door plug blew out of a nearly new Boeing 737 Max 9 during an Alaska Airlines flight earlier this year.

In a memo to employees, Calhoun acknowledged the challenges facing Boeing, stating, “The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years.”

Last week, airline CEOs began scheduling meetings with Boeing directors to express their frustration with the company’s manufacturing quality controls and lower-than-expected production of 737 Max planes. These meetings were intended to include Kellner and other board members.

Calhoun, who was appointed CEO in late 2019, took over the helm at Boeing in early 2020 after the company ousted its previous chief executive, Dennis Muilenburg, for his handling of the aftermath of two deadly 737 Max crashes.

Despite the challenges facing Boeing, the company’s stock was up more than 3% in premarket trading following Calhoun’s announcement. It remains to be seen how Boeing will navigate this new chapter in its history and what changes will be implemented under new leadership.

(Source: USA Today | CNBC)

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