Boeing’s CEO Is Resigning After The 737 Max Fiasco

Dave Calhoun, Boeing’s CEO, is scheduled to retire by the end of 2024 as part of a significant transition in the company’s management.

At Boeing’s forthcoming annual meeting in May, existing board chairman Larry Kellner will not run for reelection, the company stated on Monday. Steve Mollenkopf, a former CEO of Qualcomm and a director of Boeing since 2020, will succeed him and head the board’s search for a new CEO.

Furthermore, Stan Deal, the CEO and president of Boeing’s commercial aircraft division, is leaving the company immediately. Stephanie Pope, who most recently became Boeing’s chief operating officer after overseeing Boeing Global Services, will replace him.

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Following a run of quality and production problems with its aircraft, airlines, and regulators have been putting increasing pressure on Boeing to undergo significant adjustments. This has led to these modifications. Following a noteworthy occurrence on January 5th, when a door plug burst out of a reasonably new Boeing 737 Max during an Alaska Airlines flight, the investigation became more intense.

Calhoun acknowledged the seriousness of the issue in a memo to staff members, characterizing the Alaska Airlines Flight 1282 disaster as a pivotal moment for Boeing. He highlighted the company’s dedication to openness, security, and excellence and expressed strong optimism that Boeing would overcome this difficulty timely.

In an interview with CNBC, Calhoun emphasized that his decision to resign was entirely his own. He stressed the need for development and transformation.

Calhoun has been a board member of Boeing for more than ten years. He was appointed CEO in January 2020 after Dennis Muilenburg was fired for how he handled the aftermath of two deadly 737 Max crashes. Though Calhoun, who turns 67 next month, was pardoned from his retirement age, he has been under constant pressure to fix Boeing’s quality problems.

Under its new leadership, Boeing is going through a difficult time with more Federal Aviation Administration oversight and production limitations on 737s while quality issues are being fixed.

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