Boeing chief executive Dave Calhoun to leave at end of 2024

[Social Media]

 

Boeing CEO Dave Calhoun is set to step down at the end of 2024 as part of a significant management overhaul at the troubled aerospace company. This move comes amid ongoing scrutiny and increased pressure from airlines and regulators following a series of quality and manufacturing issues with Boeing planes, culminating in a recent incident involving a Boeing 737 Max 9 aircraft operated by Alaska Airlines.

 

In addition to Calhoun's departure, Chairman of the board Larry Kellner is resigning and will leave the board at Boeing’s annual meeting in May. He will be replaced by Steve Mollenkopf, a current Boeing director. Furthermore, Stan Deal, president and CEO of Boeing Commercial Airplanes, is leaving the company with immediate effect. Stephanie Pope, Boeing’s Chief Operating Officer, will take over Deal's role after recently assuming the COO position.

 

The decision to shake up the company's leadership comes in response to mounting concerns over manufacturing flaws and quality control issues. The Alaska Airlines Flight 1282 accident, in which a door plug blew out of a Boeing 737 Max 9 shortly after takeoff, has heightened calls for transparency and a renewed focus on safety and quality at Boeing.

 

In a message to employees, Calhoun emphasized the need for humility, transparency, and a commitment to safety and quality in the wake of the recent accident. He acknowledged that the company faces significant challenges but expressed confidence in Boeing's ability to emerge stronger from this period of upheaval.

 

Boeing has faced ongoing challenges since the grounding of its 737 Max fleet following two fatal crashes in 2018 and 2019, which ultimately led to the ousting of former CEO Dennis Muilenburg. Calhoun, who assumed the CEO role in early 2020, has been tasked with restoring confidence in the company and addressing its systemic issues.

 

Despite the leadership changes, Boeing's stock saw a positive response in premarket trading following Calhoun's announcement, suggesting investor optimism regarding the company's future direction. However, the road ahead remains uncertain as Boeing continues to navigate its way through a turbulent period in its history.

 

26.03.24

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[Georgealbert]

Following the same plan and reaction as after the 737 Max crashes in 2018 and 2019.

 

Boeing hired David Calhoun, in 2020, to fix the problems and right the ship and help return the plane maker to its engineering roots. The only problem being was that David Calhoun was trained as an accountant and has no engineering background. 
 

Hopefully this time Boeing will be held accountable, and not be protected from prosecution, as under the last US administration, when federal prosecutors entered into a deferred prosecution agreement with the company, from the previous those max incidents/accidents.

https://www.texastribune.org/2023/02/13/boeing-prosecution-737-crashes/

 

[morrobay]

58 minutes ago, Georgealbert said:

Following the same plan and reaction as after the 737 Max crashes in 2018 and 2019.

 

Boeing hired David Calhoun, in 2020, to fix the problems and right the ship and help return the plane maker to its engineering roots. The only problem being was that David Calhoun was trained as an accountant and has no engineering background. 
 

Hopefully this time Boeing will be held accountable, and not be protected from prosecution, as under the last US administration, when federal prosecutors entered into a deferred prosecution agreement with the company, from the previous those max incidents/accidents.

https://www.texastribune.org/2023/02/13/boeing-prosecution-737-crashes/

 

Yes If it can be shown the the deferred prosecution agreement was violated some how with the Alaska Air blowout then Boeing can be criminally prosecuted for the Max crashes. Outside of maybe falsifying a quality control inspection on the door plug I wonder what crime may have been committed against the Alaska Air passengers ?

[Georgealbert]

3 hours ago, morrobay said:

Yes If it can be shown the the deferred prosecution agreement was violated some how with the Alaska Air blowout then Boeing can be criminally prosecuted for the Max crashes. Outside of maybe falsifying a quality control inspection on the door plug I wonder what crime may have been committed against the Alaska Air passengers ?

Last week, 19 March, the FBI send letter to the Alaska Airlines passengers, telling them they may be victims of a crime. The FBI and Justice Department will have to determine if or what crimes were committed.
 

That letter was sent by a victim support specialist at the FBI’s Seattle office and was shared with The Seattle Times by a passenger, as well as an attorney representing several passengers on board, see below.

 

“As a Victim Specialist with the Seattle Division, I’m contacting you because we have identified you as a possible victim of a crime,” 

 

“This case is currently under investigation by the FBI. A criminal investigation can be a lengthy undertaking, and for several reasons, we cannot tell you about its progress at this time.” 

 

https://www.seattletimes.com/business/fbi-to-alaska-airlines-flight-1282-passengers-you-may-be-a-crime-victim/#:~:text=The agency sent a letter,as the plane left Portland.

 

 

Edited March 26 by Georgealbert

[billd766]

They will all leave with bulging pockets, even though between them they have managed to leave a company with its reputation in shreds.

 

Bean counters are great when you need beans counted, but they should NEVER be the ones in control of ANY engineering company.

 

No engineering company was ever built up by bean counters, but by engineers who choose quality over quantity and cheapness.

 

Hopefully it is not too late for Boeing to survive this made in house crisis, but only if the beanies are locked up under tight control.

 

If you pare costs to the bone , you have no slack to cut.

 

If you want cheap, you can get that easily. If you want quality, that costs more but it is worth it.

[impulse]

1 hour ago, billd766 said:

No engineering company was ever built up by bean counters, but by engineers who choose quality over quantity and cheapness.

 

I worked for a couple of companies that got taken over by the MBA bunch.  Their calculus seemed to be that if we cut costs to the bone, we have a 95% chance that we'll make a nice bonus and a 5% chance that we'll destroy the company and we'll just have to look for another job.  In our case, they did devastate the companies, but at least nobody died.   We just had to sell off most of our facilities and lay off most of the employees.  In fact, GE was in our mix, and things went into the toilet under their accounting geniuses.  They had no clue how the business worked (and quite well for decades).  They managed by the formula.

 

Not hard to envision the same level of ethical turpitude going on at Boeing after the MD bunch took over the reins.

On a related note, looks like United is also in the hot seat:

 

The Federal Aviation Administration will take a closer look at safety at United Airlines after a string of nearly a dozen incidents this month, the airline said in a memo Friday.

 

https://edition.cnn.com/2024/03/22/business/faa-united-airlines-safety-incidents/index.html

 

[McTavish]

Will he leave on a Boeing or Airbus?   55

 

 

[Georgealbert]

Seems it was the CEOs of the American airlines, big Boeing customers, that forced the changes, meeting and talking behind the back of the Boeing CEO David Calhoun.

 

https://theaircurrent.com/industry-strategy/boeing-csuite-changes-calhoun-deal-kellner-pope/

[Chomper Higgot]

Let’s get to the important bit.

 

How much Calhoun being paid as goes out the door following his complete failure at the job?

 

 

[Tropicalevo]

13 hours ago, billd766 said:

If you want quality, that costs more but it is worth it.

And hopefully less innocent folk will die.

[Georgealbert]

2 hours ago, Chomper Higgot said:

Let’s get to the important bit.

 

How much Calhoun being paid as goes out the door following his complete failure at the job?

 

 

David Calhoun it is recorded, has made about $63 million over the past three years, as CEO, which  includes a $1.4 million base salary, plus millions in stock-based incentives. Also remember he was a Boeing board member, starting in 2009, before becoming CEO.

 

The final golden handshake is still being calculated.

 

https://edition.cnn.com/2024/03/26/investing/boeing-ceo-millions-nightcap/index.html

Edited March 27 by Georgealbert

[ballpoint]

15 hours ago, McTavish said:

Will he leave on a Boeing or Airbus?   55

 

 

 

A Boeing would be my guess. It fits with his open door policy.

[Georgealbert]

Is this replacement of engineer Stan Deal, head of Boeing’s airliner unit, a move in the right direction, seems the aviation industry have raised many questions on how suitable Stephanie Pope is, with a background in finance.

 

https://www.telegraph.co.uk/business/2024/03/28/boeing-max-737-stephanie-pope-engineer-industry-worried/

[Georgealbert]

Boeing’s crisis is why money guys shouldn’t run a company.

 

https://www.theglobeandmail.com/business/commentary/article-boeings-crisis-is-why-money-guys-shouldnt-run-a-company/

[Georgealbert]

Analysis of where the Boeing problems started.

 

“Boeing’s fall can be traced back a quarter century, to when its leaders elevated the interests of shareholders above all others.

 

“Crush the workers. Share price. Share price. Share price. Financial moves and metrics come first,” was Boeing’s philosophy”

 

https://www.seattletimes.com/business/boeing-aerospace/boeings-long-fall-and-how-it-might-recover/