Boeing extends CEO’s term, chief financial officer set to leave
by Associated Press
Shareholders rejected a proposal for Boeing Co. to issue a report on its lobbying spending, which has totalled nearly $180 million since 2010.
Boeing’s board of directors raised the mandatory retirement age for CEO David Calhoun from 65 to 70 just days after he turned 64.
The board’s vote of confidence for Calhoun comes as Boeing continues to struggle to recover from two crashes of its bestselling airliner and the coronavirus pandemic, which has undermined demand for new planes. Boeing lost nearly $12 billion last year as orders and deliveries plunged.
Boeing also announced on Apr. 20 that Chief Financial Officer Gregory Smith, 54, will retire in July, and a search has begun for a successor to the 30-year company veteran.
Boeing shares fell 4% in midday trading.
The moves were announced shortly before the company’s annual shareholder meeting, which was conducted online.
The Boeing board has been criticized for its oversight during development of the 737 Max plane, and investors are suing several current and former executives and directors. A proxy advisory firm recommended that shareholders vote against Chairman Larry Kellner and another director, but the company said shareholders supported all 10 directors up for election.
Shareholders rejected a proposal for Boeing Co. to issue a report on its lobbying spending, which has totalled nearly $180 million since 2010, according to opensecrets.org. The board opposed the measure.
Max jets worldwide were grounded for nearly two years until late 2020, when regulators in the United States and many other countries approved changes Boeing made to a flight-control system implicated in the crashes, which killed 346 people. China, the plane’s single largest market, has not yet allowed the planes to resume flying.
Boeing’s struggles with the Max and other planes have continued. This month, more than a dozen airlines — including Southwest, American, United and Alaska — grounded about 90 Max jets after Boeing told them to inspect the planes for a potential issue involving electrical grounding of some components.