Boeing Chief Financial Officer Brian West explained the traits the next CEO should bring as the aerospace giant searches for someone to replace outgoing CEO David Calhoun.
In a note distributed to investors Thursday, JPMorgan analysts recounted a recent meeting they had with West, who joined the company in August 2021. He was asked what qualities he believed a new CEO should have. While emphasizing that the choice of a CEO is the decision of the board of directors, he emphasized two things.
“One is an appreciation and respect for the company’s history and culture and the ability to gain the support of the machinists and engineers who design and manufacture its products,” the memo said. “The second is to be comfortable with operational cadences. »
JPMorgan views West’s stated appreciation for the operations as a reflection of Boeing’s primary goal over the next few years: delivering its aircraft order backlog to customers.
Asked by Fortune If Boeing had a comment, a representative said the company had nothing to add.
West’s remarks come as the search for a new CEO has recently taken some twists and turns. In March, Boeing announced that Calhoun would withdraw end of 2024. Stephanie Pope was also appointed head of commercial aircraft divisionreplacing Stan Deal.
But last month, David Gitlin, head of Global carrier and director of Boeing since mid-2022, left the race for the top job. It was after he seemed to be the favorite.
Meanwhile, on the same day that Gitlin withdrew from the race, Calhoun expressed strong support for the leading internal candidate, Pope. But sources said The wealth Shawn Tully that new Boeing Chairman Steven Mollenkopf and other board members are interested in an outsider with deep industry experience.
Pat Shanahan is on the shortlist of candidates.who is the CEO of Boeing supplier and fuselage contractor Spirit AeroSystems, Tully reported.
This comes as Boeing considers a potential acquisition of Spirit as it seeks to gain greater control over the production process. According to the JPMorgan memo, West said Spirit was making good progress in improving operations at its Wichita plant.
Earlier this year, Boeing stopped accepting incomplete or nonconforming fuselages, which may have contributed to quality problems like the one that caused a panel to take off mid-flight on an Alaska Airlines flight.
West also told JPMorgan that it was time to decide how to finance a transaction because it could take nine months to a year to close, with the company’s financial situation changing if cash flow and 737 production deteriorate. improved during the second half of the year.
