Several of Boeing's candidates for CEO have turned it down, report says
The CEOs of General Electric and Carrier have turned down the top job at Boeing while insiders want a CEO with an engineering background, per the WSJ.
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- Boeing is struggling to find a new CEO as Dave Calhoun departs at the end of the year, per the WSJ.
- Larry Culp of GE and David Gitlin of Carrier have declined the role.
- Stephanie Pope remains a candidate, but her background in finance is an obstacle.
Boeing is struggling to find a new CEO, per a Monday report from The Wall Street Journal.
Dave Calhoun announced in March that he would step down at the end of the year, in the wake of the Alaska Airlines blowout. He will face further scrutiny as he testifies before the Senate on Tuesday.
People familiar with the discussions told the Journal that Larry Culp, the CEO of General Electric, turned down Boeing's request that he consider the role.
Culp gained plaudits for turning around GE after taking over in 2018, overhauling manufacturing processes and slashing debt.
David Gitlin, the CEO of home-appliances firm Carrier and a member of the Boeing board, said in a first-quarter earnings call that he removed his name from the list of candidates, citing his commitment to Carrier.
One candidate still in the running is Stephanie Pope, the CEO of Boeing's commercial airplanes division. Her predecessor, Stan Deal, announced his immediate retirement at the same time as Calhoun's resignation. She was formerly the planemaker's chief operating officer, and, like Calhoun, has a background in finance. A third-generation Boeing employee, she started as a finance analyst in 1994.
However, the Journal reports that many insiders are lobbying for a CEO with an engineering background.
Boeing's struggles with the 737 Max have been linked to an emphasis on speed over safety, with delivery goals taking priority over quality control.
Another potential candidate is Pat Shanahan, the CEO of Spirit AeroSystems — the supplier that built the fuselage of the Alaska 737 Max that lost its door plug in midair. The firm is in discussions to be taken over by Boeing, while some parts of the business could be sold to Airbus.
The Journal reported that the CEO discussions are also looking at whether the next leader should be based near Boeing's factories in the Seattle area rather than at its Virginia HQ.
Boeing's decision to move its headquarters away from its traditional base in 2001 attracted controversy. The distance between corporate leaders and manufacturers on the ground has been cited as contributing to the planemaker's struggles in maintaining standards.
In February, Boeing's board shut down a shareholder's bid to move its HQ back to Seattle.
And last September, the Journal reported that Boeing employees were irritated by Calhoun commuting via private jet while the firm began a return to the office.
Boeing did not immediately respond to a request for comment sent by Business Insider.
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