Boeing, the aerospace giant, is on the hunt for a new CEO as current CEO Dave Calhoun announced his departure at the end of the year. This comes amidst a safety and production quality crisis linked to the company’s best-selling airplane, the 737 Max. Boeing’s stock has plummeted this year, and the company is facing challenges such as recurring quality issues, supply chain problems, and lost market share to rival Airbus. The next CEO will need to have manufacturing expertise, knowledge of the highly regulated aviation industry, and the ability to rally employees and foster a culture of safety and innovation.
Potential candidates for the CEO position include Larry Culp, the CEO of General Electric (GE) who is set to head the aviation unit of GE that makes engines for both Boeing and Airbus planes. Culp has a strong relationship with Boeing and has led a successful turnaround for GE. However, he is focusing on GE’s aerospace unit as a standalone company.
Another potential candidate is Pat Shanahan, the interim CEO of Spirit AeroSystems and a three-decade Boeing veteran. Spirit AeroSystems is a Boeing supplier that makes fuselages for the 737 Max. Boeing is currently in talks to buy Spirit, which could lead to Shanahan becoming the CEO of the merged company.
David Gitlin, the CEO of Carrier Global Corp, who serves on Boeing’s board, is also mentioned as a potential candidate. Gitlin has experience in aviation and a strong background in manufacturing and operations.
Stephanie Pope, recently promoted to chief operating officer at Boeing, is seen as the most obvious internal option to succeed Calhoun. However, she is set to take over from Stan Deal, who is retiring from his position as head of Boeing’s commercial airplane division.
Boeing’s decision to give itself ample time to find a replacement for Calhoun has been applauded by financial analysts. It provides continuity in leadership and shows a commitment to bolstering safety.
The search for Boeing’s new CEO will be challenging, as the company is facing multiple crises and needs someone with energy, commitment, and expertise. The next CEO will have to navigate internal struggles, regain lost market share, and ensure the development of the next generation of airplanes for Boeing.
Overall, Boeing’s management shake-up signals a recognition of the need for change and a focus on safety. The company’s choice for the next CEO will be crucial in determining its future success in the highly competitive aviation industry.
