The 777 jet by Boeing. | Image:Boeing
CEO search at Boeing: Boeing is on the lookout for a new CEO from outside the company to tackle its ongoing challenges. CEO Dave Calhoun, amidst mounting pressure from various stakeholders, has announced his departure by the end of the year. This decision follows a series of setbacks, including a mid-air incident involving a 737 MAX aircraft in January.
Task overview
The upcoming CEO will face a multitude of tasks, including improving safety standards, addressing quality issues, and rebuilding trust with regulators, customers, and the public. Additionally, Boeing aims to enhance production, increase cash flow, reduce debt, and compete more effectively with Airbus.
Although Stephanie Pope was initially considered a potential successor to Calhoun, her recent appointment as head of Boeing’s commercial airplanes division suggests the company may opt for an external candidate. Analysts speculate that a high-profile hire could be in the cards.
CEO considerations
Larry Culp, CEO of GE, is amongst the names circulating as a potential candidate due to his track record of leadership. However, Culp has expressed his commitment to GE Aerospace. Pat Shanahan, former Boeing executive and current CEO of Spirit Aerosystems, is also seen as a strong contender, given his familiarity with Boeing’s operations.
Other possibilities include Greg Smith, former Boeing CFO and current chairperson of American Airlines, and David Gitlin, a Boeing board member. However, it remains uncertain if Gitlin would relinquish his position at Carrier Global.
While some advocate for a fresh perspective from outside the company, unions emphasise the importance of appointing an engineer as the next CEO. They argue that Boeing has historically thrived under engineering leadership and suggest a return to this approach for long-term success.
(With Reuters Inputs)
