Aerospace giant Boeing announced significant leadership changes on Monday as the company grapples with ongoing supply chain challenges and quality control problems. The shakeup comes after a Boeing 737 Max fuselage blew out during an Alaska Airlines flight in January, prompting heightened scrutiny from regulators.
As part of the overhaul, CEO Dave Calhoun will step down at the end of 2024. Calhoun took over as president and chief executive in January 2020 following the ouster of Dennis Muilenburg in the aftermath of two deadly 737 Max crashes.
Stan Deal, head of Boeing’s crucial commercial airplanes division, retired effectively immediately. Chief Operating Officer Stephanie Pope has been named the new CEO of the Commercial Airplanes unit.
Additionally, Chairman Larry Kellner, who has served on Boeing’s board for 13 years and was named independent chair in 2019 during the Max crisis, announced he will not run for re-election at the company’s annual meeting in May.
The board appointed Steve Mollenkopf to succeed Kellner as chairman and lead the process of selecting Boeing’s next CEO to take over when Calhoun departs next year.
The leadership upheaval comes as the company works to address production issues that led it to inform airlines of delivery delays in mid-March while it shores up quality control processes.
