Boeing's Leadership Changes

As the fallout from the recent 737 MAX problems lingers, Boeing has made significant changes to its management team.

Departure of Ed Clark

Stan Deal, the CEO of Boeing Commercial Airplanes, revealed on Wednesday that Ed Clark, who has been heading the 737 MAX program for 18 years, is leaving the company. Stepping into Clark's shoes is Katie Ringgold, who assumes the role of vice president and general manager of the 737 program at the Renton, Wash., site where MAX jets are manufactured. Ringgold previously held the position of vice president of 737 delivery operations. A successor for Ringgold's former role has not been announced yet.

Impact on Stock Prices

In response to these developments, Boeing's stock experienced a 0.6% decline in midday trading on Wednesday, whereas the S&P 500 and Dow Jones Industrial Average were down by 0.3% and 0.1% respectively.

Recent Incidents

The management changes follow an incident on Jan. 5 when an emergency door plug malfunctioned on a 737 MAX 9 aircraft operated by Alaska Air Group. This incident resulted in the temporary grounding of the MAX 9 fleet and increased scrutiny from aviation regulators. Since this event, Boeing's stock has dropped by approximately 19%, whereas the S&P 500 has risen by around 6% during the same period.

Appointment of Elizabeth Lund

In addition to the leadership reshuffle involving Clark and Ringgold, Boeing has appointed Elizabeth Lund to serve as the new Senior Vice President for Boeing Commercial Airplanes quality. Lund will be responsible for overseeing quality control and quality assurance initiatives within the company.