Boeing Chief Financial Officer Brian West shared what qualities the following CEO must have because the aerospace giant looks for somebody to interchange outgoing CEO David Calhoun.
In a note distributed to investors on Thursday, JPMorgan analysts reported a recent meeting with West, who joined the corporate in August 2021. He was asked what qualities he thinks a brand new CEO must have. While he noted that choosing a CEO is the board’s decision, he emphasized two things.
“One of these is an appreciation and respect for the company’s history and culture, as well as the ability to enlist the support of the machinists and engineers who design and build its products,” the note said. “The second option is to be familiar with the operations.”
JPMorgan sees West’s stated appreciation for the operation as a mirrored image of Boeing’s foremost goal in the following few years: delivering its aircraft inventory to customers.
Upon request from Assets If Boeing had comment, a representative said the corporate had nothing so as to add.
West’s comments come at a time when the seek for a brand new CEO has taken just a few twists and turns recently. In March Boeing announced that Calhoun would step down at the tip of 2024. Stephanie Pope was also named head of the business aircraft division, replacing Stan Deal.
But last month David Gitlin, head of Carrier Global and Boeing director since mid-2022, dropped out of the race for the highest job. After that, he appeared to be the front runner.
Meanwhile, Calhoun expressed strong support for internal front-runner Pope on the identical day Gitlin dropped out of the race. But sources said so Fortune’s Shawn Tully said recent Boeing Chairman Steven Mollenkopf and other board members were excited by an outsider with extensive industry experience.
According to Tully, the short list of candidates includes Pat Shanahan, CEO of Boeing supplier and fuselage company Spirit AeroSystems.
Boeing is considering a possible acquisition of Spirit to realize greater control over the production process. According to JPMorgan’s statement, West said Spirit is making good progress in improving operations at its Wichita facility.
Earlier this 12 months, Boeing stopped accepting incomplete or nonconforming fuselages, which could have contributed to quality problems corresponding to those who caused a fairing to return off in mid-air on an Alaska Airlines flight.
West also told JPMorgan that it was time to determine whether to finance a deal because closing could take nine months to a 12 months and the corporate’s financial condition would change as money flow and 737 production decline within the second Dress half of the 12 months.
