Notice: Boeing CEO Dave Calhoun to Step Down at End of 2024 After Alaska Airlines Door-Panel Blowout
Boeing announced on 25 March 2024 that president and CEO Dave Calhoun would step down at the end of the year following the January Alaska Airlines 737 Max door-panel blowout. Board chair Larry Kellner will not seek reelection; former Qualcomm CEO Steve Mollenkopf was named to lead the board's search for a successor. Boeing Commercial Airplanes chief Stan Deal also retired, with Stephanie Pope appointed to lead BCA.
Boeing, ranked No. 58 on the Fortune 500, announced on Monday 25 March 2024 that president and chief executive Dave Calhoun would step down at the end of the year. Calhoun, a 26-year General Electric veteran who took the helm in January 2020, leaves after a door-panel blowout on an Alaska Airlines 737 Max in January 2024 intensified scrutiny of the company's safety culture and manufacturing processes, Fortune reported.
Board and management changes
The leadership overhaul extends beyond the chief executive. Board chair Larry Kellner will not stand for reelection. Steve Mollenkopf, former CEO of Qualcomm, has been named to succeed Kellner and will lead the board's search for Boeing's next chief executive. Stan Deal, president and CEO of Boeing Commercial Airplanes (BCA), announced his retirement, and Stephanie Pope was appointed to lead BCA effective immediately.
- Dave Calhoun departs as president and CEO at end of 2024
- Steve Mollenkopf (ex-Qualcomm) named board chair, to lead CEO search
- Larry Kellner not standing for reelection as board chair
- Stan Deal retires as BCA president and CEO
- Stephanie Pope appointed to lead Boeing Commercial Airplanes
- Ed Clark, head of the 737 programme, left in February 2024; Katie Ringgold appointed to the role
- CFO Brian West confirmed to remain in his position
Financial context
Brian West, executive vice president and chief financial officer, said at the Bank of America Global Industrials Conference on 20 March that Boeing would see free cash flow usage of up to $4.5 billion during the current quarter as it works to strengthen and support production lines. "It's a hard moment, and we're probably better because of it. But I'm confident we're going to see our way through it," West said.
The company has been dogged by safety concerns since two fatal crashes — Lion Air in 2018 and Ethiopian Airlines in 2019 — that together killed 346 people and sent its finances reeling. Ron Epstein, an analyst at Bank of America, told investors: "The best leaders are forged in fire. This may be the first real chance, in a long time, Boeing has had to clean house and reset their own narrative."
Company details
The Boeing Company, headquartered in Arlington, Virginia. Official website: boeing.com.
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