- Boeing announced it is naming David Calhoun as the company CEO. Calhoun has a notable track record for turning companies around.
Recently, Boeing announced it is naming David Calhoun as the company CEO. Calhoun started his career at General Electric and more than a decade on the board of directors at Boeing. Two months ago, Calhoun had become the chairman on Boeing’s board and helped the company navigate the crisis around the grounding of the 737 Max planes following two fatal crashes due to several issues, including the automatic flight control systems.
Some of the other companies that Calhoun helped turnaround include Caterpillar and Nielsen. In March 2017, Calhoun had come chairman of the board shortly after federal agents raided the company headquarters. And he also became the head of a division at General Electric that included plane engines following 9/11. Plus Calhoun helped drive Nielsen’s efforts for an IPO. And Calhoun has worked as an executive at Blackstone private equity group.
“Having seen him run GE’s aviation business after 9/11, I know he can execute under pressure,” said former GE CEO Jeff Immelt in an interview with Reuters.
Calhoun will be replacing CEO Dennis Muilenburg who was fired from the role. Back in October, Boeing also ousted Kevin McAllister, who was the president and CEO of Boeing Commercial Airplanes. Muilenburg could still potentially have a severance package worth $39 million in cash and stock, according to ABC.
Boeing CFO Greg Smith will serve as interim CEO until Calhoun fills the role officially on January 13. And Boeing said it “will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers” under the new leadership.
“The Board determined that a change in leadership was necessary to restore confidence in the company moving forward and that we will proceed with a renewed commitment to full transparency, including effective and proactive communications with the FAA, other global regulators and our customers,” explained Smith in a message to employees. “Over the next few weeks as we transition to new leadership, I am committed to ensuring above all that we meet the needs of our stakeholders – especially our regulators, customers, and employees – with transparency and humility.”
The ousting of Muilenburg happened shortly after the Boeing Starliner failed to reach the International Space Station. The unmanned Starliner spacecraft had to abort the mission due to an automation error causing the Starliner to not reach the correct orbit.
“I strongly believe in the future of Boeing and the 737 MAX. I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation,” added Calhoun in a statement.
