Leadership Changes Coming To Boeing, But Not Soon Enough?

Boeing CEO Dave Calhoun, alongside board chair Larry Kellner and commercial planes business head Stan Deal, are slated to step down by year-end amidst a substantial management overhaul prompted by ongoing safety crises, notably the January mid-air panel blowout involving a 737 MAX plane. This decision arises amid persistent challenges in rebuilding trust in the company, with Calhoun, who took the helm after the 2018 and 2019 crashes, intending to retire by year-end. Boeing grapples with federal investigations, leading to production cuts as it wrestles with safety and quality issues. COO Stephanie Pope is to assume leadership of Boeing Commercial Airplanes, while Steve Mollenkopf assumes the role of new board chair to oversee the CEO search. Although analysts view the shakeup positively, they emphasize the imperative of fostering cultural change within Boeing. While there's speculation about Spirit AeroSystems CEO and former Boeing executive Patrick Shanahan as a potential successor, concerns persist about his leadership style while he was a senior leader at Boeing. Stan Deal would have been a natural replacement for Calhoun if not considered collateral damage within Boeing. Despite these shifts, United and Delta Airlines remain supportive during this transitional phase. Meanwhile, the International Association of Machinists and Aerospace Workers pushes for increased representation in management decisions. Critics contend that Calhoun's departure should have occurred earlier, given his involvement in the troubled 737 MAX and 787 Dreamliner programs. However, Boeing's previous leadership under Dennis Muilenburg left a significant void, complicating the transition. The potential appointment of Shanahan, viewed unfavorably due to his past leadership style, raises uncertainty about Boeing's trajectory.