Boeing has announced the appointment of Robert “Kelly” Ortberg as the new CEO, succeeding Dave Calhoun, in a strategic move aimed at addressing the company’s ongoing safety and manufacturing challenges. Ortberg, a seasoned aerospace executive, will assume the role on August 8, 2024. His extensive industry experience includes leading Rockwell Collins, which later became Collins Aerospace under United Technologies, and most recently serving on the board of RTX before retiring in 2021.
Ortberg’s appointment underscores Boeing’s commitment to bringing in external leadership with deep industry knowledge. Analysts, such as Sheila Kahyaoglu of Jefferies, have noted his reputation as a tough negotiator who managed a diverse customer base, including Boeing itself.
Ortberg will confront several critical challenges at Boeing, including ongoing financial losses, heightened regulatory scrutiny, supply chain disruptions, and strained relations with airline customers and labor unions. Despite these obstacles, Ortberg expressed optimism about his new role, emphasizing his eagerness to begin work. He will be based in Seattle, close to Boeing’s primary production facilities, signaling his intent to be actively involved in operations.
Boeing will compensate Ortberg with a base salary of $1.5 million and incentives valued at $20.5 million for the upcoming year. Notably, Boeing waived its mandatory retirement age of 65 for Ortberg, who is currently 64, reflecting the company’s confidence in his leadership.
The leadership transition comes amidst broader organizational changes at Boeing, including recent executive departures. Despite recent setbacks, including a significant quarterly loss, Boeing shares rose 2% following Ortberg’s appointment, reflecting investor confidence in his ability to steer the company through its recovery phase. Ortberg will also join Boeing’s board, while Calhoun will remain as a senior advisor until his retirement in March 2024.
