Boeing CEO to step down in broad management shake-up as 737 Max crisis weighs on aerospace giant
CNBCMar 25
Boeing CEO Resigns as Part of Leadership Shakeup
The Facts
Boeing Chief Executive Officer (CEO) Dave Calhoun on Monday announced his resignation effective at the end of the year, and the aerospace manufacturer announced several other changes to its leadership.
The firm faces ongoing scrutiny from regulators and customers in light of the January mid-cabin blowout of a door plug on a Boeing 737 Max 9 Alaska Airlines flight.
The Spin
Narrative A
Calls for change at Boeing have been heard and things are going to change under new leaders. The Alaska Airlines incident was a watershed moment for turning things around, and the company will emerge from this situation stronger than ever with quality and safety first and foremost in everyone's minds. Customers and passengers can rest assured Boeing will do better moving forward.
Narrative B
Changing people on the company's leadership chart won't change things at Boeing until it rethinks the way it does business. For too long ownership has valued profits and cost-cutting over safety. Too many of the people in power come from the financial industry. Fundamental changes — not changes in leadership — must be made to secure the company's future and make flying in Boeing planes safer.
Nerd narrative
There's a 50% chance that the price of Boeing stock at market close March 29, 2024 will be at lease $189 per share, according to the Metaculus prediction community.