Boeing Announces Management Overhaul Amid Safety Crisis: CEO David Calhoun Steps Down, Key Executives Retire, And Leadership Shifts

On Monday, Boeing revealed plans for a comprehensive management overhaul, announcing that David Calhoun, its current chief executive, would resign by the end of 2024. This move comes as the aircraft manufacturer faces its most significant safety crisis in years.

Stan Deal, the head of the division responsible for producing aircraft for commercial clients, will retire with immediate effect. Stephanie Pope, currently serving as the company's chief operating officer, will assume his position.

Additionally, the company stated that its chairman, Larry Kellner, would not seek re-election.

The restructuring of management occurs in the wake of a critical event: less than three months ago, a panel, referred to as a door plug, detached from a Boeing Max 9 aircraft during an Alaska Airlines flight on January 5th. This incident deepened the company's crisis following the crashes of its Max 8 planes in 2018 and 2019, which resulted in the tragic loss of nearly 350 lives.

The incident in Alaska reignited concerns regarding the safety of Max planes and raised doubts about Boeing's dedication to quality. Airline chief executives publicly voiced their frustration with the manufacturer. The Federal Aviation Administration, responsible for regulating the plane maker, grounded similar aircraft across the United States. Upon clearing the planes for flight again, the FAA also imposed restrictions on Boeing's proposed production boost of Max planes, thwarting the company's recent endeavor to compete with its European counterpart, Airbus.

In the past few weeks, Boeing has faced increasing scrutiny, particularly following an F.A.A. audit of its Max production that uncovered numerous deficiencies. The agency has given Boeing a 90-day deadline to address these issues.

In a memo to employees on Monday regarding the leadership changes, Mr. Calhoun described the Jan. 5 incident involving Alaska Airlines Flight 1282 as a pivotal moment for Boeing.

“The eyes of the world are on us, and I know we will come through this moment a better company, building on all the learnings we accumulated as we worked together to rebuild Boeing over the last number of years,” he said.

Mr. Calhoun assumed the role of chief executive after the dismissal of his predecessor, Dennis A. Muilenburg, who was at the helm during the 2018 and 2019 crashes. Mr. Calhoun, a member of Boeing's board since 2009, took over leadership in January 2020. He had previously held significant positions at General Electric, including vice chairman and head of the infrastructure division.

Ms. Pope's career trajectory has been notably swift in recent years. She was promoted from chief financial officer of Boeing's commercial airplanes division to head of Boeing Global Services in early 2022, responsible for aftermarket support to customers. In December, she was appointed chief operating officer, positioning her for a potential succession to Mr. Calhoun.

Following the door plug incident in January, Mr. Calhoun has consistently emphasized Boeing's dedication to quality and safety. However, pressure has persisted on both him and the company. The departure of the head of its 737 Max program announced in February failed to alleviate the escalating criticism.

According to a source familiar with the arrangements, top executives from major U.S. airlines were scheduled to meet with Mr. Kellner and other board members this week. While Mr. Calhoun supported these meetings, he was not planning to participate in them.