Boeing CEO Dave Calhoun Plans To Step Down Following 737 Max Crisis
After a
series of aviation mishaps, including the door plug that ripped off an Alaska Airlines Boeing 737 Max jet earlier this year and other 737 and 777 incidents in recent weeks, coupled with intensified oversight from federal regulatory bodies,
Boeing CEO Dave Calhoun is stepping down at the end of the year.
"As you all know, the Alaska Airlines Flight 1282 accident was a watershed moment for Boeing," Calhoun wrote in a letter to employees.
Calhoun continued:
"My decision to step down as CEO at the end of this year is one the board has been prepared for and will result in a number of changes at a management and governance level moving forward."
He also noted that the board's chairman, Larry Kellner, will be stepping down at Boeing's annual meeting in May. The board has elected Steve Mollenkopf to succeed Kellner as chair.
In addition to these major leadership changes, Stan Deal, president and CEO of Boeing Commercial Airplanes, will retire from the company, and Stephanie Pope will lead the commercial airplanes segment.
Last week, executives from major airlines spoke with Boeing's board to express frustrations over quality control issues in the manufacturing process.
Calhoun has been on a mea culpa tour, acknowledging his company's quality control issues. He has promised investors, airline customers, and the general public about the struggles and potential changes to the company.
Boeing shares are up 4% in premarket trading in New York on the major shakeup.
Calhoun replaced Dennis Muilenburg in 2019 for mishandling two deadly 737 Max crashes.
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Here's Boeing CEO Dave Calhoun's full letter to employees:
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Someone is getting a big fat golden parachute.