The infamous Boeing, an aerospace manufacturing conglomerate, was shackled by a mountain of allegations and controversies concerning its safety unit. These episodes forced CEO David Calhoun to step down from office, but the shareholders seem unhappy about his ‘complete’ exit.
Boeing shareholders have voted to re-elect departing CEO Dave Calhoun to the board of directors, a preliminary tally on Friday showed, as he sought to march with heightened adrenaline to convince investors that the manufacturer is on the path to stability after yearlong turbulence concerning its mechanical inaccuracy which has led to serious midair misadventure.
Once recognized for enabling a seamless air-experience, Boeing has lost its renowned craftmanship. At least that is what the former employees have to say about the company. The overwhelming number of investigations into the manufacturer’s safety and quality control operations has provoked investors to issue an ultimatum to the company’s Board of Directors : contain the issues or undertake a complete company overhaul. Choosing the latter…
Professing to reassure concerned investors, CEO Dave Calhoun in March said he will step down by the year’s end, months after a door plug panel blew out midflight from a Boeing 737 Max 9, ushering in new scrutiny of the manufacturer’s safety and quality control issues. To accomplish another major reshuffle, Boeing also replaced its board chair and the head of its commercial airplane unit.
Assuming that CEO Dave’s exit from the company’s highest executive office was an emotionally frustrating experience for the shareholders would not be an overstatement. The shareholders have voted at Boeing annual general meeting (AGM) for Calhoun to remain involved in the company’s day-to-day activities, not as an executive but as a board member.
CEO Dave Calhoun resigned after DOJ intervention
Boeing is dealing with a sprawling crisis that includes multiple investigations, possible prosecution for past actions, and slumping production of its strongest selling-jet. Boeing shares have plunged 30% this year, and its plethora of technical glitches have driven down deliveries of new aircraft, frustrating airline executive who have complained about having to change their flight schedules and scale back staffing.
It also has further strained Boeing’s relationship with its regulator, the Federal Aviation Administration, which has ramped up inspections of the manufacturer. These extraordinary efforts undertaken by investigative agencies and government institutions to curtail Boeing’s feat in aviation industry comes after the company has been accused of incidences that have taken place mid-flight, leaving an uncomfortable experience or rather horrific one for passengers to reminisce.
Earlier this week, the Justice Department said Boeing violated a 2021 settlement that protected the company from criminal charges tied to the two fatal 737 Max crashes, opening Boeing up to potential U.S. prosecution. The catastrophe which the planemaker became, thanks to its unsupervised quality assertions, hierarchical mismanagement, and sweeping sale efforts, had all exploded in former CEO, Dave Calhoun’s face, who had to find his solace in resigning from the company’s executive honor.
Search to replace CEO Dave Colhoun
Boeing’s newly appointed chairman, Steve Mollenkopf, told shareholders at the annual general meeting on Friday that he has consulted investors and customers on Calhoun’s successor. The proxy adviser Glass Lewis had recommended shareholders vote against the re-election of Calhoun and to other directors to Boeing’s Board, citing dissatisfaction over efforts to transfer the planemaker’s safety culture.
“Boeing is committed to a process that will identify the next CEO to lead Boeing through our current challenges and into the future,” asserted Steve who is leading a search to replace Colhoun. Te company has sought feedback from investors, customers, and employees in the search. “The months and year ahead are critically important to our company as we take the necessary steps to regain the trust lost in recent times, get back on track, and perform like the company we all know that Boeing can be every day.”
Investors have been waiting to share progress on choosing Calhoun’s successor. Management experts said the company needed to find a new leader by mid-year as its current leadership did not have the credibility to make the bold changes to let Boeing name fly high in air. “Boeing cannot get back on track until its board appoint a new CEO from outside the company with a technical background and a deep understanding of aerospace technology.
