Benzinga - by Nabaparna Bhattacharya, Benzinga Editor.
Boeing Company (NYSE:BA) is reportedly facing complications in its search for a new leader as several high-profile candidates have declined the opportunity amid discussions about the necessity of the next CEO being based near its Seattle-area factories.
In March, Boeing’s Chief Executive David Calhoun announced his intention to resign by year’s end.
Larry Culp, CEO of GE Aerospace (NYSE:GE) and widely seen as a suitable candidate, declined Boeing’s invitation to consider assuming the role, The Wall Street Journal reported, citing sources familiar with the discussions.
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Boeing’s Chief Operating Officer Stephanie Pope, Spirit Aerosystems Holdings, Inc. (NYSE:SPR) CEO Pat Shanahan, and aerospace veteran David Gitlin, who serves on the company’s board, are also facing hurdles in their pursuit of the top job.
On Tuesday, Calhoun heads to Capitol Hill to testify before a Senate panel, highlighting the challenging nature of Boeing’s leadership vacancy.
He is set to address issues ranging from whistleblower allegations to the January incident where a Boeing 737 MAX experienced a near catastrophe with a blown-off fuselage during flight.
Calhoun’s successor will need to address these issues while tackling entrenched quality problems that have caused significant production delays and dissatisfaction among airline customers, federal regulators, and investors, The Wall Street Journal added.
Discussions have included whether the next leader should be located near Boeing’s Seattle-area manufacturing plants, which produce 737s and other aircraft.
Boeing relocated its headquarters to Chicago in 2001 and announced plans in 2022 to move its main offices to Arlington, VA. The company operates a factory in South Carolina focused on producing 787s.
The executive search is managed by Russell Reynolds Associates and Boeing’s Chairman Steven Mollenkopf, formerly CEO of QUALCOMM.
Discussions have included scenarios where Mollenkopf assumes the CEO role temporarily to facilitate a transition, particularly if an internal candidate like Pope is being considered for succession, The Wall Street Journal added.
Price Action: BA shares are trading lower by 1.73% to $175.39 at last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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