A year ago, the Boeing company decided to launch an incentive plan of more than five million euros so that its top executive, Dave Calhoun, would remain at the head of the company during the industrial (and reputational) recovery process after the accidents. fatalities suffered by the 737 Max in 2018 (Lion Air) and 2019 (Ethiopian Airlines).
“This retention incentive reflects the Board of Directors’ continued confidence in Dave to restore our operational and financial strength, guided by our focus on safety, quality and transparency,” the company said in February 2023. In April 2021 , Boeing extended the required retirement age from 65 to 70 to allow Calhoun, 66, to remain in the position.
However, the latest accident suffered by Alaska Airlines last week, with the Boeing 737 Max 9 aircraft that lost one of its doors in mid-flight (and the appearance of some loose screws in the fuselage) cast serious doubts on the company and its bet on this executive. Because this time the incident was under his responsibility, having assumed office in 2020.
In high school, Calhoun already showed some leadership qualities. He was one of three captains on the varsity basketball team and played golf. The bulk of his career was spent at another North American colossus, General Electric, where he spent 26 years. When he left the firm in 2006, he moved to Nielsen, which he took public, and joined the management committee of the powerful Blackstone fund.
But when he came to run the company three years ago, in the midst of turbulence, Calhoun was not very successful, making several outbursts. First, he messed with the previous management. “It’s worse than he imagined, honestly,” he said after examining the situation upon taking office. To add cheekily that “I am the plan.” Then he got involved with the pilots from the 2018 and 2019 accidents. “[In Ethiopia and Indonesia] they don’t have anywhere near the experience they have here in the US.” Some comments for which he later apologized.
The point is that with or without him, Boeing’s shares have never returned to the levels prior to those of the two aforementioned air disasters and, in the last week, after Alaska Airlines, the securities have reduced their value almost 10%. “We are living in a moment of anxiety,” Calhoun acknowledged, just when its closest rival Airbus is experiencing one of its sweetest moments, with a record of orders in 2013 and twelve years of assured production. It is true that Boeing can always count on the Pentagon’s help with military orders and assert itself as a lobbyist thanks to its political connections. But what can Calhoun do to right the ship and improve the company’s image?
Giuseppe Cavallo, adjunct professor at Esade and specialist in brand and corporate reputation, believes that in Boeing’s circumstances a courageous executive director should act on two fronts. “First, transparency. He investigates what happened and presents it in the most painless but at the same time sincere way.” And so far it seems Calhoun is striving to deliver. He has not hidden and has shown his face. He assured that “something similar will never happen again.” “The first thing is to recognize our mistake,” he declared. He took it on as a personal commitment. “I have kids. I have grandchildren, like many of you. This matter matters to me. Every detail of this story matters,” he intoned.
“The truly intelligent thing, however, would be to identify the real causes that caused the serious events and implement solutions,” says Cavallo. This involves, in his opinion, detecting the strategic decisions that have affected quality, the processes to improve and perhaps most importantly, seeing what may have failed in the business culture. “This last aspect allows the intelligence of individuals and groups to be activated beyond the written rules,” he says. It’s in Calhoun’s hands to make Boeing’s landing soft.
