Tuesday's Market Minute: Boeing Fires CEO To End Choppy Year

Wrapping up Boeing Co’s BA turbulent year, the aircraft manufacturer announced the firing of CEO Dennis Muilenburg on December 23. Muilenberg’s termination was effective immediately, and Chairman David Calhoun will become the CEO in January.

This is the latest headwind in Boeing’s struggle to regain the trust of its regulators, customers, and the public after the grounding of its best-selling plane, the 737 Max. Earlier in December, the Federal Aviation Administration reprimanded the company for setting unrealistic expectations for the plane’s return to service. Airlines carrying the 737 Max in their fleets have lost millions of dollars in revenue in 2019 after the plane was grounded in mid-March.

And, to Boeing shareholders’ dismay, there is no clear date for which the 737 Max will return to service. In a note announcing the change of leadership, interim CEO Greg Smith said, “The Board determined that a change in leadership was necessary to restore confidence in the company moving forward and that we will proceed with a renewed commitment to full transparency, including effective and proactive communications with the FAA, other global regulators and our customers.”

Boeing shares were trading nearly 3% higher Monday following the CEO departure.

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