(Reuters) -Boeing Co CEO Dave Calhoun will step down by year-end, in a broad management shakeup brought on by the planemaker's sprawling safety crisis stemming from a January mid-air panel blowout on a 737 MAX plane.
COMMENTARY
RUSSELL HACKMANN, PRESIDENT, HACKMANN WEALTH PARTNERS
"When the ship has been running into icebergs not just once but multiple (times), then it's time to replace the captain of the ship."
"Even though Calhoun took over a few years ago ... we've been going from iceberg to iceberg and you got to replace that guy."
JOHN SULLIVAN, ANALYST, BENCHMARK
"At the end of the day, frustrations from investors, airline customers with aircraft production, FAA safety concerns, and now an emboldened Union looking for a Board seat in upcoming negotiations pointed to a need for a drastic change at Boeing (NYSE:BA)."
"The continued slow production ramp, another high-profile safety incident (door blowout), FAA safety reports, lack of commercial future outlook, and share loss to Airbus, required drastic action from BA's Board to reinstate confidence in all of BA's multiple stakeholders."
SHEILA KAHYAOGLU, ANALYST, JEFFERIES
"The moves are not surprising as Boeing has come under intense scrutiny from customers and the FAA/government with the change signifying the next chapter for Boeing which includes an intense focus on safety, manufacturing, and customers/government relations that have come under stress as of late."
"We view the moves as positive."
ADAM SARHAN, CHIEF EXECUTIVE, 50 PARK INVESTMENTS, NEW YORK
"It's a good move because Boeing has had massive problems for years and he has not been able to fix those problems. So, there needs to be accountability. The CEO's job is to fix the problem, and he hasn't been able to do that, so it's perfectly normal for him to step down.
"I wouldn't be surprised at all if Boeing has two CEOs. This job might be too big for one person to do."
ROBERT PAVLIK, SENIOR PORTFOLIO MANAGER AT DAKOTA WEALTH
"They need more than just a shake-up at the CEO and the chairman of the board level... they're just paralyzed from making decisions."
"I think Dave Calhoun is being targeted as the scapegoat, not necessarily by only the board, but by the government."
"The bounce is going to be short-lived... It's going to take a little bit more time for Boeing to get it straightened out, but the company certainly will not be going out of business, the government won't allow that to happen. Boeing needs the government, and the government needs Boeing."
CAMERON DAWSON, CHIEF INVESTMENT OFFICER, NEWEDGE WEALTH
"Clearly there is a relief rally that there could be some cultural change happening at Boeing. We've long thought that the issues at Boeing have been seated in cultural challenges."
"Everything from the laser focus just on cash flow to moving headquarters away from the base of manufacturing. At the end of the day, Dave Calhoun was as much of an insider as if he had worked at Boeing because he came from GE and was on the board for a long time."
"Boeing clearly needs a shift in culture, which is likely why the shares are up this morning. Challenges will still persist though. In the short term, there are a lot of things that Boeing has to address on the safety side which are not fixed overnight. But clearly the market is seeing this as at least a step in the right direction."
RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY
"It was a foregone conclusion that they need to make a change. The shareholders are glad to see the company recognize that."
"The new management will need to take a fresh approach to Boeing. It will take time for those plans to be revealed. There maybe some clearing of costs prior to the new management coming in, so things could look a little worse before they look a little better. Overall, it's a net positive for the stock."
DAVID WAGNER, PORTFOLIO MANAGER, APTUS CAPITAL ADVISORS, CINCINNATI, OHIO
"It's never a good sign when a CEO leaves.. this is just a headline and will not affect the structural lack of oversight problems that continue to plague the name."