Boeing CEO search list-what were they thinking?
Anyone who follows the news knows that Boeing is in trouble and that same set of humans have opinions of what needs to be fixed. That range of their answers may be infinite; however, if the expertise of the NTSB, Congress, and the investment community are worthy of greater weight, then their critiques should impact the search criteria. The problem appears to be traced to an emphasis of profits over well-designed quality in design, subcontracting, and manufacturing integrity plus overriding SAFETY CULTURE.
INVESTING.com has provided some insight into who the search firm, (JEFFRIES??), has identified as leading contenders. The individuals identified in the article suggest a pattern among the top candidates—
- INDSIDERS—
- a member of the Board who was there when the Max8 began;
- the new COO who is cited in the article for expanding margins and increasing sales
- the interim CEO of the contractor which is alleged to be the source of problems as well as an organization filled with ignored whistleblowers, per news sources. Most of his career was with Boeing with production experience and a solid engineering background. His resume points to his role in recovering the B-777, an airplane which has encountered whistleblower attacks recently.
- CITED “defending against regulators, takeovers/activists, and customer disputes…”
- REALLY???
- ENGINEERING and/or PRODUCTION QUALITY
- Only 1
- SAFETY MANAGEMENT SYSTEMS
- If anyone has that experience, it was not mentioned!
The article then mentions the also rans. This collection seems to include people who may actually have the credentials to restore Boeing’s historic SAFETY CULTURE:
- JOHN PLANT [actually mentioned in the top 5] Chair and CEO of Howmet, global leader in metal products and advanced technologies for the aerospace, defense and commercial transportation sectors; substantial experience in global operations and management, strategic planning, finance, business development, and risk management; Director Emeritus of the Automotive Safety Council
- Greg Smith chairman of American’s board of directors, 30-year career at The Boeing Company. Executive Vice President and CFO, leading the company’s Enterprise Operations, Finance, Strategy and Shared Services organizations. company’s manufacturing, operations, supply chain, quality, and program management teams.
- WESLEY G. BUSH Chief Executive Officer and President, Northrop Grumman Corporation, sector president, chief financial officer, and most recently president and chief operating officer. Bush earned bachelor’s and master’s degrees in electrical engineering from the Massachusetts Institute of Technology. He is also a graduate of UCLA’s Executive Management Program.
- VICENTE REYNAL, Chairman, the CEO and President of Ingersoll Rand, prior CEO of Gardner Denver. Danaher, operational and executive roles at Thermo Fisher Scientific and AlliedSignal Corporation. Board of directors for American Airlines and Ownership Works, a non-profit organization. Bachelor of Science in Mechanical Engineering from Georgia Institute of Technology and Master of Science degrees in both Mechanical Engineering and Technology and Policy from Massachusetts Institute of Technology.
- TOM ARSENEAULT, President and CEO of BAE Systems, company’s U.S.-based, international defense, aerospace, and security company; fulfilling critical and technologically challenging missions; responsible for operations spanning the commercial and defense electronics markets. bachelor’s and master’s degrees in electrical engineering from Worcester Polytechnic Institute and an MBA from Boston University
.
o KELLY ORTBERG, Retired Chairman, President and Chief Executive Officer, Rockwell Collins, Inc. 30 years of experience in aerospace and defense, including numerous executive positions. Ortberg served as special advisor to the office of the CEO of RTX, and he was CEO of Collins Aerospace and had also served as Chairman, President, and CEO of Rockwell Collins. bachelor’s degree in mechanical engineering from the University of Iowa
Sadly, Boeing has lost the confidence of the FAA and all of the relevant Civil Aviation authorities, of its airline customers and the traveling public. To restore its global reputation for safety, the MOST IMPORTANT ATTRIBUTES for its next CEO must include
- engineering education and experience,
- a strong record for SAFETY CULTURE and SMS,
- a personality that inspires all of Boeing’s employees that QUALITY is #1,
- an ability to reestablish a positive relationship with the public/airlines/regulators
and
- a demeanor that conveys to all that Boeing’s integrity is paramount!!!
The top candidates do not appear to meet these essential skills; hopefully the search with focus on these strategic needs, not some poorly conceived recommendations from a Board- WHAT WERE THEY THINKING???
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Boeing leadership frontrunners: Who will be the next Boeing CEO?
AuthorSam Boughedda
Published 05/14/2024, 11:17 AM
Boeing leadership frontrunners: Who will be the next Boeing CEO?
As Boeing (NYSE:BA) navigates through a challenging and transitional period marked by various headwinds that have significantly impacted the company, it is currently on the hunt for a new CEO.
The search has intensified, and the list of potential names has dwindled, with their now BEING TWO MAIN FRONTRUNNERS, according to Jefferies analysts, who took a deeper look into the leadership race in a recent research note.
The Next Boeing CEO?
In its note, the firm {??? DISCLOSING A CONFIDENTIAL SEARCH?) highlighted that “fan-favorite” LARRY CULP has maintained that GE Aero is his home. Culp is the Chair and CEO of GE Aerospace and former Chair and CEO of GE. Jefferies[1] says he drives continuous improvement and a lean mindset throughout the operation. However, they feel Larry has likely removed himself given his “pristine reputation” and the fact he would not want to jeopardize his legacy.
Meanwhile, Jefferies said Carrier’s David Gitlin has removed himself from the running. The firm believes the two frontrunners are STEVE MOLLENKOPF and STEPHANIE POPE.
HEAD OF THE SEARCH CHAIR Steve Mollenkopf “could fit, with a successful history at QCOM defending against regulators, takeovers/activists, and customer disputes,” said Jefferies. Mollenkopf joined the Boeing board in 2020 and has been appointed independent chair to lead the CEO search. However, Jefferies feels his hat may be in the ring.
He was appointed President and COO of Qualcomm (NASDAQ:QCOM) in 2011, serving for two years before becoming CEO-elect and then CEO in 2014, serving in the role until 2021. Despite Mollenkopf’s tenure at Qualcomm, Jefferies questions whether there he could have unfinished business.
Stephanie Pope has a three-decade BA resume. She is the only Boeing insider in contention, which Jefferies believes is a likely disadvantage given the public perception despite the internal backing. “She is now a three-decade veteran (joined in 1994), served across the 3 biz units, and is a third-gen employee at BA, who climbed to CFO of Defense, Space & Security by 2012,” explains Jefferies. “Pope was VP & CFO of Global Services (BGS) during its stand-up in 2017 under Stan Deal, then promoted to VP & CFO of BCA in Dec 2020.”
“At BGS, she expanded margins by 500 bps vs 2021 levels to mid-17%’s (vs ’16-’19 avg of 15.1%) and grew sales at 8%+ annually,” notes the firm. “Pope became COO in Jan 2024 and stepped into the President & CEO role of BCA following Deal’s departure.”
Jefferies notes that other candidates on the potential shortlist INCLUDE PAT SHANAHAN, the interim President and CEO of Spirit AeroSystems (NYSE:SPR), and JOHN PLANT, who served as CEO of Arconic from February 2019 to April 2020 and as Co-CEO of Howmet from April 2020 to October 2021 before being appointed as sole CEO.
In addition, GREG SMITH, who served as Boeing’s CFO and EVP of Enterprise Operations, Finance, and Strategy from 2012 to 2021, WES BUSH, the former CEO of Northrop Grumman (NYSE:NOC), VICENTE REYNAL, the Chairman, the CEO and President of Ingersoll Rand (NYSE:IR), TOM ARSENEAULT, the President and CEO of BAE Systems (LON:BAES), and KELLY ORTBERG, who remains on the RTX Board, could also be on the shortlist.
…
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[1] Neither the Boeing nor the Jeffries website indicates that this head-hunting firm is charged with this search.
