November 30, 2023

Dave Calhoun, Boeing Chairman

Adam Jeffery | CNBC

Boeing announced Tuesday that the mandatory retirement age of 64-year-old CEO Dave Calhoun will be raised from 65 to 70 as the company continues to face challenges related to the coronavirus pandemic, manufacturing issues and the aftermath of two crashes on its bestselling aircraft.

Greg Smith, Boeing’s CFO, will retire in July, the manufacturer said. The company is conducting a search for his successor.

Calhoun, who joined Boeing’s board of directors in 2009, became CEO in January 2020 after serving as chairman for three months. At the time, the company was struggling with financial and reputational problems from two crashes of its 737 Max aircraft within five months. The board of directors ousted the previous CEO because of his overcoming of the crisis.

Boeing’s board of directors faces re-election at an annual meeting as production and financial problems persist.

The pandemic began shortly after Calhoun took the lead, hurting demand for air travel and new aircraft. Boeing’s losses rose from $ 636 million in 2019 to $ 11.9 billion last year.

But since regulators started re-opening the Max for commercial service in November, sales have rebounded. Boeing has received new Max orders this year from major customers such as United Airlines and Southwest Airlines.

Chairman Larry Kellner said the board’s decision was based on “the significant progress Boeing has made under Dave’s leadership and the continuity necessary to thrive in our long cycle industry.”