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Boeing shareholders vote to keep departing CEO on planemaker's board
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Boeing shareholders vote to keep departing CEO on planemaker's board
May 20, 2024 12:22 PM

May 17 (Reuters) - Boeing's ( BA ) departing CEO Dave

Calhoun was re-elected to stay on the troubled company's board

on Friday, even as the planemaker said it was preparing to meet

with the U.S. aviation regulator over its quality-control

problems.

Boeing ( BA ) is dealing with a sprawling crisis that includes

multiple investigations, possible prosecution for past actions

and slumping production of its strongest-selling jet.

Shareholders voted at Boeing's ( BA ) annual general meeting (AGM)

for Calhoun to remain on the board. Proxy advisor Glass Lewis

had recommended shareholders vote against the re-election of

Calhoun and two other directors, citing dissatisfaction over

efforts to transform the planemaker's safety culture.

Calhoun said the company will meet with the Federal Aviation

Administration (FAA) in a "couple of weeks" to present a final

plan that would respect the U.S. regulator's 90-day deadline.

In late February, the FAA said Boeing ( BA ) must develop a

comprehensive plan to address "systemic quality-control issues,"

after a mid-air emergency in January sparked renewed safety

concerns.

"We anticipate the FAA will take whatever time is necessary

to review that plan and hold us accountable to the various

control parameters that are put in place as we move forward,"

Calhoun said.

Mollenkopf, a former Qualcomm chief, said the

company has hired an external advisor to assist with the search

to replace Calhoun, who said he would retire by year-end as part

of a management shakeup following the January emergency on a new

737 MAX 9.

Boeing ( BA ) is "committed to a process that will identify the

next CEO to lead Boeing ( BA ) through our current challenges and into

the future," he said.

The company has sought feedback from customers, employees

and investors in the search, Mollenkopf said.

"The months and years ahead are critically important to our

company as we take the necessary steps to regain the trust lost

in recent times, get back on track and perform like the company

that we all know Boeing ( BA ) can and must be every day," he said.

Boeing ( BA ) shares were slightly lower in New York. The stock has

plunged 30% this year.

Shareholders also supported a non-binding advisory vote on

compensation, after proxy advisor ISS flagged a misalignment

between CEO pay and company performance.

Tony Bancroft, portfolio manager at Gabelli Funds, which

owns Boeing ( BA ) shares, said he believes Calhoun's pay package is in

line with a company of Boeing's ( BA ) size.

Investors have been waiting to hear progress on choosing

Calhoun's successor. Management experts said the company needs

to find a new leader by mid-year as its current leadership does

not have the credibility to make bold changes.

"Boeing ( BA ) cannot get back on track until its board appoints a

new CEO from outside the company with a technical background and

a deep understanding of aerospace technology," said Bill George,

former Medtronic CEO and executive fellow at Harvard

Business School.

Bancroft said Pat Shanahan, CEO of Boeing ( BA ) supplier Spirit

AeroSystems ( SPR ), would be a "great option" for the next CEO.

Other possible successors flagged by analysts or sources have

included Boeing ( BA ) board member and Carrier boss David

Gitlin and American Airlines ( AAL ) Chairman Greg Smith.

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