Boeing has announced that CEO David Calhoun will step down at the end of 2024 as part of a management shake-up in response to ongoing safety concerns.
Stan Deal, head of the commercial planes division, will retire immediately and be replaced by Stephanie Pope as the new chief operating officer.
Larry Kellner, the chairman, will not stand for re-election and Steve Mollenkopf will take over as the new chairman to lead the CEO selection process.
The changes come after a recent incident involving a Boeing Max 9 airplane and follow previous safety issues with Boeing’s Max 8 planes.
Recent issues have raised concerns about Boeing’s commitment to safety and quality, leading to increased scrutiny from regulators and the Justice Department.
In a note to employees, Calhoun acknowledged the challenges Boeing faces and expressed confidence in the company’s ability to overcome them.
Calhoun took over as CEO in 2020 after the previous CEO was fired following the crashes in 2018 and 2019.
Calhoun’s departure is earlier than expected due to changes in retirement age policies, while Stephanie Pope’s rise within the company positions her as a potential successor.
Boeing’s succession planning faces challenges, with limited candidates available to lead a company of its size and complexity.
Pressure on Boeing continues to grow as questions about quality and safety persist, leading to ongoing discussions among industry executives.
Southwest Airlines, a major Boeing customer, expressed support for the new leadership team and commitment to ensuring quality and safety standards are met.
Boeing’s stock saw a 1% increase following the announcement of the management changes.
