FX.co ★ Boeing CEO Dave Calhoun To Step Down; Stock Climbs

Dave Calhoun, the CEO of Boeing Co., has declared his intention to step down from his position following turbulent years at the helm of the aerospace and defence giant. He also revealed that a new CEO for Boeing Commercial Airplanes and a Board Chair have been announced by the company.

The announcement led Boeing's shares to rise approximately 1.3 percent on the New York Stock Exchange, trading at $191.37. The shares had previously seen a roughly 4 percent boost in pre-market activity.

Boeing recently resolved an issue in January involving a new Boeing 737-9 MAX aircraft, which had put the company under scrutiny. A statement was released on Monday, outlining the major alterations to the company's Board and Management.

Calhoun described the incident with Alaska Airlines Flight 1282 as a turning point for Boeing and ensured employees that safety and quality would remain their top priorities. He will be stepping down from his CEO role at the end of 2024 but will continue leading the company to restore stability throughout the year.

Steve Mollenkopf will replace Larry Kellner as Boeing's new independent board chair following Kellner's decision not to stand for re-election. Mollenkopf will oversee the selection process for the company's next CEO.

Meanwhile, Stephanie Pope has been appointed CEO of Boeing Commercial Airplanes with immediate effect. Pope, who has been serving as Boeing's chief operating officer since January, replaces Stan Deal, who is retiring.

Boeing, a 108-year-old company with an impressive 170,000 employees, provides commercial planes, space systems, and defence products to clients in over 150 countries.

In 2019, Boeing faced a crisis when their biggest-selling aircraft at the time, the 737 MAX, was grounded worldwide after two accidents within six months claimed the lives of 346 people. The Federal Aviation Administration (FAA) lifted its 20-month safety ban on the aircraft in November 2020.

However, manufacturing defects caused the company to pause deliveries of the 787 Dreamliner. On top of these issues, the COVID-19 pandemic dramatically reduced demand for airplanes. Boeing's commercial and defence operations saw a notable decline in deliveries in 2020, the lowest since 1978.

More recently, the FAA grounded Boeing's 737 MAX 9 airplanes following a serious incident and started an investigation into the company's manufacturing practices. Calhoun asserted that they are setting high standards for future employees despite the challenges, emphasizing safety and quality as their main focus.