Boeing Co (NYSE:BA) CEO Jim McNerney announces his retirement after a decade long career as the top executive of the aerospace giant comes to an end. He will hand over CEO’s position to his successor Dennis Muilenburg next week.
Even though, Mr. McNerney will leave CEO’s position, but he will continue to be the Chairman of the company until he retires in February 2016. While talking to reporters, his successor Muilenburg stated that Boeing hadn’t changed its strategy during McNerney’s tenure, and it’s unlikely to change in the near future. The company has just entered in its second century, which is not a small feet.
His major challenges would be to deliver order backlog worth $648. Apart from this, he will need to take care of company’s space and defense business in the ever-changing market conditions and business environment.
McNerney has done a tremendous work so far, and Muilenburg’s job would be to continue from where he has left. The current CEO of the company had reached mandatory retirement age in the previous year, but he continued working on his position due to non-availability of a deserving candidate.
The defense business of the company shrank under his leadership, which caused a lot of worries to the management. The board had started looking for his replacement back in 2013 to ensure that things fall in line. As a result, Muilenburg, age 51, was named the Chief Operating Officer and President in December 2013. It was his appointment to two senior positions that give a hint that he could be the next face of Boeing Co (NYSE:BA).
A lot of analysts predicted this decision but never had expected that it would be announced so soon. Muilenburg thinks that the defense business of the company needs to be reshaped to maintain high standards. He will look forward to taking appropriate decisions in the same direction as soon as he takes over CEO’s position.