Boeing May Turn to Outsider CEO to Tackle Spiraling Crisis
Editor
26 March 2024 16:30 WIB
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Another Boeing veteran tipped for a possible return, industry sources said, is former Chief Financial Officer Greg Smith, who was edged out by Calhoun in 2021 and is now chairman of American Airlines (AAL.O).
Smith spent part of his career overseeing supply chains. American Airlines did not respond to a request for comment.
Boeing board member David Gitlin has been widely mentioned as a potential CEO candidate, but analysts said it was unclear whether he would be willing to give up his post as head of ventilation group Carrier Global (CARR.N). Boeing and Carrier declined to comment.
Several analysts said Boeing would prefer a clean break to stem a tide of safety criticism from regulators and Congress.
"(Boeing's) culture of quality and manufacturing has been called into question over recent issues, and a new, outside perspective on operations could be encouraging for investors," said RBC Capital Markets analyst Ken Herbert.
But unions, some of whom are entering a new phase of contract negotiations, want a return to basics after widespread criticism that Boeing has promoted shareholder value over quality and safety.
Ray Goforth, executive director of a key union at Boeing and Spirit, said the planemaker's next CEO should be an engineer.
"This company thrived under engineering leadership for decades, but has lurched from crisis to crisis," said the head of union SPEEA, which counts engineers among its members.
REUTERS
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