Please ensure Javascript is enabled for purposes of website accessibility

Boeing Extends Mandatory CEO Retirement Age

By Lou Whiteman - Updated Apr 20, 2021 at 11:27AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It will now be 70 instead of 65.

Boeing's (BA 0.26%) long-serving chief financial officer will retire this summer, but the aerospace giant is taking steps to make sure CEO Dave Calhoun doesn't quickly follow him out the door.

In a statement, Boeing said that Gregory D. Smith, who has served as CFO since 2011, will retire effective July 9. The board is also extending the company's standard CEO retirement age from 65 to 70, allowing Calhoun, 64, more time at the helm.

A Boeing Dreamliner in flight.

Image source: Boeing.

The shuffling comes as Boeing tries to turn the page after a disastrous couple of years. The company's 737 MAX was grounded in March 2019 after a pair of fatal accidents, and only returned to the skies last fall. It has also been hit hard by the pandemic, which has cut into commercial airline demand for new planes.

Boeing's board and management have faced heavy scrutiny due to the 737 MAX issues. Calhoun, then a director, took over as CEO in January 2020 after former CEO Dennis Muilenburg was forced out. But the company and its board remain under pressure.

Boeing noted that while the board's action extends the mandatory retirement age for Calhoun to April 1, 2028, there is no fixed term associated with his employment.

Board chair Larry Kellner praised Calhoun's work in navigating "one of the most challenging and complex periods in its long history" and said now is not the time to be considering a CEO swap.

Kellner added, "Given the substantial progress Boeing has made under Dave's leadership, as well as the continuity necessary to thrive in our long-cycle industry, the board has determined that it is in the best interests of the company and its stakeholders to allow the board and Dave the flexibility for him to continue in his role beyond the company's standard retirement age."

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Boeing Company Stock Quote
The Boeing Company
$170.43 (0.26%) $0.44

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/15/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.