Dave Calhoun to Step Down as Boeing CEO

DALLAS — Boeing President and CEO Dave Calhoun has decided to step down at the end of 2024. However, Boeing says he will continue to lead the aerospace manufacturer through the year to complete critical work to stabilize and position the company for the future.

In addition, Board Chair Larry Kellner has informed the board that he will not stand for re-election at the upcoming Annual Shareholder meeting. The board has elected Steve Mollenkopf to succeed Kellner as independent board chair. Mollenkopf will lead the board's process of selecting Boeing's next CEO.

Kellner has served on the Boeing Board for 13 years and has been the board chair since late 2019. During his tenure, he oversaw the establishment of a new board aerospace safety committee and led the recruitment of new independent directors with expertise in engineering, safety, manufacturing, and aerospace.

Steve Mollenkopf has been elected as the independent board chair to succeed Kellner. Mollenkopf will lead the board's process of selecting the next CEO for Boeing.

Calhoun's Four-year Stint at Boeing

Dave Calhoun has been Boeing's CEO since January 2020 after the company ousted its previous CEO, Dennis Muilenburg, for his mishandling of the aftermath of two fatal 737 MAX crashes. Calhoun inherited a challenging period for the company, including lingering safety concerns and Boeing's recent production quality control fiasco concerning the Boeing 737-9.

Calhoun expressed his gratitude for the opportunity to serve Boeing and emphasized the importance of completing the work to return the company to stability. He also highlighted the company's commitment to safety and quality. Read Calhoun's letter to employees here.

Apart from the CEO and board chair changes, Stan Deal, the President and CEO of Boeing Commercial Airplanes (BCA) will retire from the company. Stephanie Pope has been appointed to lead BCA, effective immediately.

Industry Response

Ryanair (FR) CEO Michael O'Leary took to X to welcome the news of management changes inside Boeing.

Boeing shareholder Tony Bancroft, who is also Portfolio Manager and aerospace and defense analyst on The Gabelli Commercial Aerospace & Defense ETF (GCAD) ETF at Gabelli Funds, said that overall, the managerial shakeup at Boeing was an "orderly transition that Boeing was planning on making in the long run anyway.  Calhoun is going to be 67 next month (April 18), and they had to extend the mandatory retirement age for him."

"He was never going to get 70 at the company. The January 5 incident probably accelerated the timeline but overall, I think he's here to finish his job before the end of the year. Dave Calhoun had a lot of work to do when he got there. He had quite a big load to carry post the 2018 and 2019 mishaps I think he's done a good job of bringing Boeing forward."

As to who will take the helm at the end of the year, Bancroft says, "I think there's sort of a shortlist of who the next permanent CEO will be. There have been some articles that have been written in speculation that Pat Shanahan the current CEO of Spirit Aerosystems would be a logical fit. He is the former head of the defense business for Boeing, an engineer and checks those two boxes."

We concur with Bancroft on this; knowing there will be a new CEO "alleviates some of the hesitation and anxiety amongst Boeing investors, customers, and insiders."