Boeing CEO Quits, Stonecipher Takes Over
49 minutes ago Add Business - Reuters to My Yahoo!
By Kathy Fieweger
CHICAGO (Reuters) - Boeing Co. (NYSE:BA - news) Chairman and Chief Executive Phil Condit unexpectedly resigned on Monday, and the company said Harry Stonecipher, who retired last year, will come back to run the massive aerospace company.
Reuters Photo
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1067.51
-0.59
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+86.88
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The company said in a statement its board of directors had deliberated thoroughly and decided that "a new structure for the leadership of the company is needed."
The departure of Condit, 62, follows the firing last week of Chief Financial Officer Michael Sears for unethical conduct, along with a former high-ranking Air Force official.
Sears was Condit's No. 2 man and at the time of his firing, industry experts said events raised questions about Condit's role in leading the company, as well as leadership succession at Boeing.
Stonecipher, considered by many a shrewd but hard-nosed leader, was formerly Boeing's vice chairman after having run McDonnell Douglas, with which Boeing merged in 1997. He is becoming president and CEO.
Taking on the role of nonexecutive chairman is Lew Platt, former CEO of Hewlett-Packard (NYSE:HPQ - news).
The surprise move caps a tumultuous year at Chicago-based Boeing, which has suffered in nearly all of its core business units from a downturn in commercial aircraft deliveries. It also faces investigations into illegal activities and unethical conduct in its military contracting procedures.
STOCK INDICATED LOWER
Shares of Boeing before the market open were quoted at $37.80, down from Friday's close of $38.39.
Nick Fothergill, defense analyst for Banc of America Securities, said the news was not entirely unexpected.
"He was going to retire anyway in '05. We always knew they were looking for a replacement, but the chances were that it was going to be the CFO."
Sears was fired along with Darleen Druyun for speaking to her about future employment with Boeing when she was still with the Air Force.
"Boeing is taking this whole corporate governance thing very seriously," Fothergill added. "They're proving to their prime customer -- the government -- that they have really taken this (scandal) in the most serious way possible by firing the CFO and the CEO resigning."
49 minutes ago Add Business - Reuters to My Yahoo!
By Kathy Fieweger
CHICAGO (Reuters) - Boeing Co. (NYSE:BA - news) Chairman and Chief Executive Phil Condit unexpectedly resigned on Monday, and the company said Harry Stonecipher, who retired last year, will come back to run the massive aerospace company.
Reuters Photo
Related Quotes
BA
HPQ
DJIA
NASDAQ
^SPC
37.80
21.83
9869.34
1987.73
1067.51
-0.59
+0.09
+86.88
+27.47
+9.30
delayed 20 mins - disclaimer
Quote Data provided by Reuters
The company said in a statement its board of directors had deliberated thoroughly and decided that "a new structure for the leadership of the company is needed."
The departure of Condit, 62, follows the firing last week of Chief Financial Officer Michael Sears for unethical conduct, along with a former high-ranking Air Force official.
Sears was Condit's No. 2 man and at the time of his firing, industry experts said events raised questions about Condit's role in leading the company, as well as leadership succession at Boeing.
Stonecipher, considered by many a shrewd but hard-nosed leader, was formerly Boeing's vice chairman after having run McDonnell Douglas, with which Boeing merged in 1997. He is becoming president and CEO.
Taking on the role of nonexecutive chairman is Lew Platt, former CEO of Hewlett-Packard (NYSE:HPQ - news).
The surprise move caps a tumultuous year at Chicago-based Boeing, which has suffered in nearly all of its core business units from a downturn in commercial aircraft deliveries. It also faces investigations into illegal activities and unethical conduct in its military contracting procedures.
STOCK INDICATED LOWER
Shares of Boeing before the market open were quoted at $37.80, down from Friday's close of $38.39.
Nick Fothergill, defense analyst for Banc of America Securities, said the news was not entirely unexpected.
"He was going to retire anyway in '05. We always knew they were looking for a replacement, but the chances were that it was going to be the CFO."
Sears was fired along with Darleen Druyun for speaking to her about future employment with Boeing when she was still with the Air Force.
"Boeing is taking this whole corporate governance thing very seriously," Fothergill added. "They're proving to their prime customer -- the government -- that they have really taken this (scandal) in the most serious way possible by firing the CFO and the CEO resigning."
