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.