Boeing retains CEO until ‘28

Boeing announced on Tuesday (Wednesday in Manila) that David Calhoun would remain CEO potentially through 2028 as the aviation giant navigates a multiyear comeback following the 737 MAX scandal and the Covid-19 travel industry collapse.

Boeing raised the company’s retirement age for Calhoun to 70, ensuring a measure of continuity during a still-uncertain time in aviation and as questions linger over the company’s practices after two tragic MAX crashes claimed 346 lives.

Boeing, which has a standard retirement age of 65, cited Calhoun’s progress in “building regulator and customer confidence” and enabling the 737 MAX to return to service following a 20-month grounding. Changing Calhoun’s retirement age allows “for flexibility,” Boeing Chairman Larry Kellner said during an annual meeting.

At the meeting, investors reelected the company’s board and voted down proposals that would have given shareholders more influence on the selection of new board members and required additional disclosure of corporate lobbying practices.

“Under Dave’s strong leadership, Boeing has effectively navigated one of the most challenging and complex periods in its long history,” Kellner said in a press release.

“His dedication to renewing the company’s commitment to safety, quality and transparency has been critical in building regulator and customer confidence as Boeing returns the 737 MAX to service.”

Calhoun, 64, expressed confidence in a long-term aviation recovery once international flying and business travel returns. His top priorities are to finance Boeing’s capital budget and to reduce debt.

“I’m confident the cash flow will come back and be robust,” said Calhoun, who cited the global availability of coronavirus vaccines as critical. “I can’t pick a date,” he said. “We need the markets to come back, and I’m confident they will.”