Amid multiple scandals and safety incidents related to its planes and the international scrutiny that followed, Boeing (BA) chief executive Dave Calhoun started off the week of March 25 by announcing that he would step down from the helm by the end of 2024.
The move, the aircraft manufacturing giant announced in a statement, was necessary "to lead Boeing through the year to complete the critical work underway to stabilize and position the company for the future."
Related: Police are investigating the death of Boeing whistleblower who voiced safety concerns
Along with Calhoun, the company has announced a massive shakeup that will lead to either the resignation or eventual departure of several of its leaders.
Boeing CEO on resignation: 'I know that we will come through this'
Stan Deal, who leads the major branch of Boeing Commercial Airplanes as its chief executive, is retiring effective immediately while Board Of Directors Chair Larry Kellner will not stand for re-election when the next shareholders meeting comes up this year. Kellner will be replaced by current board member and Qualcomm (QCOM) CEO Steve Mollenkopf while Stephanie Pope, who was only promoted to Chief Operating Officer last December, will take over from Deal.
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The board will, in the meantime, take on a search for Calhoun's replacement as he ties up current projects and prepares for the resignation.
"It has been the greatest privilege of my life to serve Boeing," Calhoun said of his resignation in a letter to Boeing's nearly 170,000 employees. "The eyes of the world are on us, and I know that we will come through this moment a better company."
All of this comes at a time when the U.S. Department of Justice (DOJ) began a criminal investigation into the January 2024 incident in which the door plug and part of the window panel blew out in the air seven minutes into an Alaska Airlines (ALK) flight between California and Oregon. Other recent high-profile incidents include a United (UAL) Boeing 737-900ER whose engine caught flames after leaving Houston and a United Boeing 777 plane that lost a wheel while taking off from San Francisco last month.
Deal will 'finish the job this year,' outgoing board chair says
Kellner also said that he has been "considering the right time for a transition of leadership on our board" and is confident that Deal will "finish the job this year that he started in 2020 to position Boeing, and our employees, for a stronger future."
Amid the DOJ investigation and its multiple scandals, Boeing stock has been down 6% last month and nearly 25% since the start of the year. After news of the executive shake-up broke, shares saw a slight bump of 1.5% and were at $191.28 per share as of Monday afternoon.
In an interview with CNBC on his departure, Calhoun said that his replacement needs to be someone "who knows how to handle a big, long cycle business like ours."
"Our next leader is going to develop and call out the next airplane for the Boeing Company," he said. "It will be a $50 billion investment that will all happen on our next leaders' watch."
