USA – America’s Aircraft Manufacturer Boeing Co has in October this year, restructured its board, stripping chief executive Dennis Muilenburg of his chairmanship title.
The moves by the U.S plane maker comes as an unexpected strategy shift announced only hours after a global aviation panel criticized development of the troubled 737 MAX and is the latest step the board has taken in recent weeks to improve executive oversight of its engineering ranks and industrial operations.
Boeing said in a statement that Separating the role of Chairman and CEO which will enable Muilenburg to have “maximum focus” on steering daily operations.
Lead Director David Calhoun, a senior managing director at Blackstone Group, will takeover as non-executive chairman, Boeing said in its announcement.
It added that the board had “full confidence” in Muilenburg, who will retain the top job and remain on the board.
The decision came as Boeing struggles to get its best-selling 737 MAX back into service following a worldwide safety ban in March triggered by two crashes that killed a total of 346 people in Ethiopia and Indonesia.
It also comes some six months after Muilenburg survived a shareholder motion to split his chairman and CEO roles.
It is also part of the intense pressure that Muilenburg has faced during the worst crisis of his four years at the helm of the world’s largest plane maker.
Boeing added that the decision is the latest of several actions by the board of directors and Boeing senior leadership to strengthen the company’s governance and safety management processes.
Earlier on Friday, an international aviation panel criticized U.S. regulators and Boeing over the certification of the plane.
An internal review in August revealed that the company was working to reorganize its engineering reporting lines company-wide and ensure higher ranking officials, including its CEO, get faster feedback about potential safety concerns from lower levels of the company.
As part of the move, Muilenburg will be receiving granular weekly reports of potential safety issues discussed at meetings of rank-and-file engineers.
Boeing also revealed plans to name a new director with deep safety experience and expertise to serve on the board and its newly created Aerospace Safety Committee in the near term.
