Boeing Chief Dave Calhoun To Step Down

Boeing President and CEO Dave Calhoun shared a message with all company employees on March 25, 2024, where he explained his intention to resign and step down at the end of the year, a decision he has “been considering for some time.”

Calhoun claims it is the right time for a CEO transition. He revealed in the statement that 2024 would be “my last year as CEO of our great company” and added that the board had been notified of his decision.

Calhoun wrote, “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. My long-time partner in all things Boeing, our Chair Larry Kellner, has advised the board and me that he does not intend to stand for re-election at our upcoming Annual Meeting of Shareholders.”

Subsequently, Steve Mollenkopf will succeed Kellner as chair.

LISTEN NOW: Boeing CEO Dave Calhoun joins us in an exclusive interview to discuss his decision to step down as CEO later in 2024. Listen and follow the @SquawkCNBC podcast here: https://t.co/gZaa8fjg8c pic.twitter.com/01ozVVrWxX

— CNBC (@CNBC) March 25, 2024

Calhoun claimed he initially agreed to take on the role of Boeing’s CEO in 2020 at the board’s request. He said it was due to the “unprecedented circumstances” the company faced over the past several years.

He said it was the “greatest privilege of my life” to serve in that role and be a board chair. Therefore, he believes this transition will position the company to “finish the job” they must do, including fixing “what isn’t working” and getting Boeing back on track toward recovery and stability. He assured workers that Boeing would remain focused on the work needed to stabilize the company.

Calhoun added that Boeing Commercial Airplanes President and CEO Stan Deal is retiring from the company. Stephanie Pope will subsequently head the company’s BCA business, effective immediately.

The company has been stressed since a door panel blew out on a Boeing 737 MAX plane flown by Alaska Airlines in January. No one was seriously injured, and the aircraft landed safely, but it has led to an investigation from the National Transportation Safety Board and other agencies.

According to Calhoun, that incident was “a watershed moment for Boeing.” In his statement to employees, he said, “We must continue to respond to this accident with humility and complete transparency. We also must inculcate a total commitment to safety and quality at every level of our company.”