Boeing, the aerospace giant, faced a significant hurdle during its annual shareholder meeting on May 17, 2024. The company's outgoing CEO, Dave Calhoun, was up for re-election to the board despite ongoing investigations and financial struggles.
Calhoun's tenure at Boeing has been marked by a series of crises. In January 2024, a door plug panel blew out midflight from a Boeing 737 Max 9, leading to new scrutiny of the manufacturer's safety and quality control issues which were not mentioned in other articles.
Despite these challenges, Calhoun was re-elected to the board with shareholder support. The vote came as Boeing works to regain trust from customers, investors, and regulators following a string of crises that have plagued the company since 2019.
Boeing's latest problems have driven down deliveries of new aircraft and frustrated airline executives who have complained about having to change their flight schedules and scale back staffing. The manufacturer's relationship with its regulator, the Federal Aviation Administration (FAA), has also been strained, with inspections of the manufacturer ramping up.
The Justice Department announced earlier this week that Boeing had violated a 2021 settlement that protected the company from criminal charges tied to the two fatal 737 Max crashes in 2019 and 2020, opening Boeing up to potential U.S. prosecution.
Calhoun's successor is yet to be announced, with Steve Mollenkopf leading the search for a new CEO from outside the company with a technical background and deep understanding of aerospace technology.
Boeing shares have plunged 30% this year, reflecting investor concerns over the company's ability to turn itself around. The manufacturer is currently under criminal investigation by the Justice Department for its role in the midair blowout of a fuselage section on an Alaska Airlines 737 Max 9 jet in January.
Calhoun joined Boeing's board in 2009 and took on the CEO role in January 2020 following the two catastrophic crashes. Those crashes, which happened while his predecessor Dennis Muilenburg was CEO, killed all passengers and crew on board.
Boeing's new chairman, Steven Mollenkopf, acknowledged during Friday's shareholder meeting that the months and years ahead are 'critically important' as the company takes steps to regain lost trust. He urged investors to be patient as Boeing works through its challenges and focuses on improving safety and quality control.
Despite these challenges, Calhoun remains committed to leading Boeing through its current crisis. The CEO has said he will retire by year's end but is focused on ensuring a smooth transition for his successor.
