Boeing made a major annoucement regarding a shakeup of their executive team with their current Chief Operating Officer, Dennis Muilenburg, stepping into the Chief Executive Officer role that will be vacated by James McNerney, who is retiring after running the company for the past ten years.
During Mcnerney’s tenure, there was a major decrease in defense spending, an economic recession, and the introduction of the Dreamliner 787.
Muilenburg, who is 51 years old, will assume the CEO job beginning on July 1st, while Mcnerney will continue as the Chairman of the Board, per a statement released by Boeing. Boeing indicated that they were aware of this move for some time and have been grooming Dennis for the additional responsibilities. Mcnerney will be around as needed and provide him with the help he needs in the transition which began almost eighteen months ago when he assumed the COO role at the company. Before this, he ran Boeing Defense Systems which is one of the smaller main units of the company and which is a $60 billion business.
Dennis is thought to be facing many challenging decisions including the eventual replacement of the 777 with the 777x. The 777 is one of the most profitable models for Boeing. The timing and introduction of the new model will be a critical decision for the business.
Folks at Skout say the change is thought to be a positive one for the company and Dennis is well thought of by analysts and company officials.