Current:Home > FinanceBoeing CEO Dave Calhoun to step down by end of year -Quantum Finance Bridge
Boeing CEO Dave Calhoun to step down by end of year
View
Date:2025-04-13 22:44:51
Boeing CEO Dave Calhoun is stepping down. The management shakeup comes as the aircraft manufacturer's struggles with production problems and a mid-air blowout of a door panel on one of its Boeing 737 Max 9 planes has spurred regulatory scrutiny.
In a Monday statement, the company said Calhoun will remain in his role until the end of 2024 in order "to lead Boeing through the year to complete the critical work underway to stabilize and position the company for the future."
Calhoun's departure announcement comes four years after he stepped into the CEO role with the mandate to stabilize the company following two crashes of Boeing aircraft back in 2018 and 2019. But Boeing manufacturing has continued to draw scrutiny under Calhoun's term, with the January mid-air blowout involving a Boeing 737 Max 9 jetliner.
"Boeing is in deep need of a change in culture around safety and quality," said Timothy Hubbard, assistant professor of management at the University of Notre Dame's Mendoza College of Business, in an email. "These changes take time, but can be accelerated by new leadership. It's unfortunate that it will take 9 months to get a new chief executive officer."
Airline executives have expressed their frustration with the company, and even seemingly minor incidents involving Boeing jets have attracted extra attention.
Fallout from the January 5 blowout has raised scrutiny of Boeing to its highest level since the two Boeing 737 Max jet crashes that killed 346 people, with the first occurring in 2018 in Indonesia and the second in 2019 in Ethiopia.
In a note Monday to employees, Calhoun, 67, called the Alaska Airlines accident "a watershed moment for Boeing." that requires "a total commitment to safety and quality at every level of our company."
The next Boeing CEO
The management shakeup culminates a rocky few months for the aircraft manufacturer, amid scrutiny after an Alaska Airlines flight was forced to make an emergency landing in January after a door plug blew out minutes after departure. In February, a panel of aviation experts assembled by regulators found that Boeing had "a lack of awareness of safety-related metrics at all levels."
In a Monday interview with CNBC, Calhoun said that the next CEO needs to be an executive "who knows how to handle a big, long cycle business like ours."
"Our next leader is going to develop and call out the next airplane for the Boeing Company," he said. "It will be a $50 billion investment that will all happen on our next leaders' watch."
Additionally, Boeing on Monday also said that board chair Larry Kellner won't stand for reelection at the company's annual shareholder meeting. It added that it has elected former Qualcomm CEO Steve Mollenkopf to succeed Kellner as independent board chair.
Mollenkopf will lead the board in picking Boeing's next CEO, the company said.
Calhoun stepped into the CEO role at Boeing in January 2020, succeeding Dennis Muilenburg who was fired following the two deadly crashes of Boeing 737 aircraft.
—With reporting by the Associated Press.
- In:
- Boeing
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
TwitterveryGood! (19165)
Related
- Juan Soto praise of Mets' future a tough sight for Yankees, but World Series goal remains
- Met Gala 2024 dress code, co-chairs revealed: Bad Bunny, JLo, Zendaya set to host
- Vanessa Hudgens spills on working out, winding down and waking up (including this must-have)
- 2023's surprise NBA dunk contest champ reaped many rewards. But not the one he wanted most
- South Korean president's party divided over defiant martial law speech
- Gwen Stefani Reveals Luxurious Valentine's Day Gift From Blake Shelton
- A Republican plan to legalize medical marijuana in Wisconsin is dead
- New Hampshire Senate rejects enshrining abortion rights in the state constitution
- $73.5M beach replenishment project starts in January at Jersey Shore
- Stock market today: Asian shares track Wall Street rally as Japan’s Nikkei nears a record high
Ranking
- Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
- Lake Mead's water levels measure highest since 2021 after 'Pineapple Express' slams California
- Delay tactics and quick trips: Takeaways from two Trump case hearings in New York and Georgia
- 'I can't move': Pack of dogs bites 11-year-old boy around 60 times during attack in SC: Reports
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- In a first, Oscar-nominated short ‘The Last Repair Shop’ to air on broadcast television
- GMA3's T.J. Holmes Reveals When He First Knew He Loved Amy Robach
- Matthew Morrison Reveals He Was Quitting Glee Before Cory Monteith's Death
Recommendation
What do we know about the mysterious drones reported flying over New Jersey?
'Jeopardy' contestant answers Beyoncé for '50 greatest rappers of all time' category
Legislature and New Mexico governor meet halfway on gun control and housing, but paid leave falters
Championship parades likely to change in wake of shooting at Chiefs Super Bowl celebration
Don't let hackers fool you with a 'scam
After getting 'sand kicked in face,' Yankees ready for reboot: 'Hellbent' on World Series
'I can't move': Pack of dogs bites 11-year-old boy around 60 times during attack in SC: Reports
11 cold-stunned sea turtles returned to Atlantic after rehabilitation in Florida