Shareholders breathe a sigh of relief this morning as the company announced CEO Dave Calhoun is leaving at the end of 2024.
Boeing shareholders are breathing a sigh of relief this morning as the company announced CEO Dave Calhoun is leaving at the end of 2024. The stock has steadily been losing ground, but does this management shakeup, including some of the board, solve their bigger problems? Personally, I doubt it. Following Calhoun’s resignation, Boeing announced Larry Kellner would not seek re-election as independent board chair, with Steve Mollenkopf set to take over the role. Additionally, Stan Deal, head of Boeing Commercial Airplanes, will retire, with COO Stephanie Pope stepping in immediately as his replacement and essentially going to the top of the tree.Boeings Problems
Boeing has experienced a multitude of hurdles in recent times, resulting in a perfect storm of setbacks. The 737 MAX’s grounding following catastrophic crashes caused significant financial harm and ruined the company’s brand. Production issues on other models resulted in delays and cancellations, weakening public trust in Boeing’s safety culture. Frequent leadership changes exacerbated the company’s volatility as it sought to reestablish its footing. This convergence of challenges has stressed Boeing’s finances, resulting in job losses and reducing investor confidence. The leadership has been less vocal in reassuring investors about the issues too, which led some to call for the CEO’s resignation.The CEO Conundrum
With extensive experience as an investor, I am acutely aware of the critical role that CEOs play in determining the success of a public company, molding its culture, and propelling its operational outcomes.
