Boeing CEO Dave Calhoun to step down amid 737 Max Jetliner safety crisis

Boeing President and CEO Dave Calhoun will step down by the end of 2024, the company said on Monday. Board Chair Larry Kellner will also quit amid safety issues regarding the 737 Max Jetliner.

In a letter to employees, Calhoun said the Alaska Airlines flight 1282 accident was a "watershed moment for Boeing."

"It has been the greatest privilege of my life to serve Boeing. The eyes of the world are on us, and I know that we will come through this moment a better company. We will remain squarely focused on completing the work we have done together to return our company to stability after the extraordinary challenges of the past five years, with safety and quality at the forefront of everything that we do," he added.

Why is Dave Calhoun resigning?

The firm is under pressure after a door plug blew out of an Alaska Airlines Boeing 737 Max mid-air in January. Although no one was injured, the aircraft maker's safety and quality control standards came under scrutiny. It also led to groundings of multiple aeroplanes over safety issues.

Year-to-date, shares of Boeing have declined 23.97% on the New York Stock Exchange.

Calhoun was appointed as CEO after his predecessor, Dennis Muilenburg, was ousted after two crashes in 2018 and 2019 that claimed 346 lives.

Board Chair Kellner will also not stand for re-election at the upcoming Annual Shareholder meeting. Steve Mollenkopf will succeed Kellner as independent board chair.

"In this role, Mollenkopf will lead the board's process of selecting Boeing's next CEO," the company said.

Stan Deal, head of Boeing Commercial Airplanes, has also retired effective Monday. He has been replaced by Stephanie Pope, who was earlier serving as the company's chief operating officer (COO).