Summary
- Boeing CEO Dave Calhoun resigns amid scandals, AGM to discuss leadership.
- Investors seek clarity on CEO replacement at Boeing’s upcoming AGM.
- Boeing faces crisis – investigations, production slumps, reputation damage, orders to rival Airbus.
Boeing CEO Dave Calhoun has announced he will be resigning and stepping down amid the ongoing Boeing 737 MAX scandals. On Friday, Boeing will hold an annual general meeting expected to discuss the company’s future leadership and direction. Boeing is gripped in turmoil, and now even the former American Airlines CEO has stated that everyone is worried about it.
Boeing’s ‘rougher ride’ AGM
At Boeing’s upcoming annual general meeting (AGM), investors are expected to seek clarity on the replacement of outgoing Dave Calhoun and other leadership. Shareholders will vote on whether CEO Dave Calhoun will be able to remain on the board.
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The AGM will be a virtual gathering, and former Qualcomm chief Steve Mollenkopf is expected to make his first public appearance as chairman. According to David Duff (the co-founder and director of the Dublin-based Corporate Governance Institute), this AGM will be a rougher ride.
“I would think it’s going to be a rougher ride, this AGM. Most (attendees) are institutional investors who want to know, ‘Can you give us some sort of commitment you’re going to sort this place out and what you hope to achieve within a certain space of time?’ What he says in the AGM is going to be important, not just for investors but passengers.” – David Duffy, of the Dublin-based Corporate Governance Institute, in reference to Mollenkopf (reported by Reuters)
Search for Boeing CEO replacement
Reuters reports that Glass Lewis (a proxy advisor) has recommended shareholders vote against reflecting Calhoun and two other Boeing board directors. Investors are keen to hear progress on the quest to replace Calhoun as CEO. Reuters states “Management experts said the company needs to find a new leader by mid-year as its current leadership does not have the credibility to make bold changes.”
Photo: BlueBarronPhoto | Shutterstock.com
Harvard Professor of Management Practice Bill George says Boeing needs a new CEO from outside the company with a technical background and a deep understanding of aerospace technology to get back on track. Pat Shanahan, the CEO of Boeing’s important supplier, Spirit AeroSystems, has been touted as a great option for Boeing. Other possible successors include American Airlines Chairman Greg Smith and Boeing board member David Gitlin (there are rumors that David Gitlin could be the top candidate).

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Boeing, a giant in chaos
Boeing is currently caught up in a maelstrom – almost a perfect storm of sorts. It faces multiple investigations as the Department of Justice mulls reopening a criminal investigation into the company while its aircraft production slumps. Making matters worse, the crisis is around its most popular jet (the 737 MAX family). Boeing’s reputation has taken a major hit, and whistleblowers have accused the company of taking shortcuts (some whistleblowers have suddenly died). Once-loyal customers are now placing orders with arch-rival Airbus. Boeing’s shares have plunged 30% so far this year.