Boeing Chief Financial Officer Brian West outlined what qualities the next chief executive should have as the aerospace giant searches for someone to replace retiring CEO David Calhoun.
In a note distributed to investors on Thursday, JPMorgan analysts described a recent meeting with West, who joined the company in August 2021. He was asked what qualities he personally thought a new CEO should have. Noting that the selection of the CEO is a board decision, he emphasized two things.
“One is recognition and respect for the company’s history and culture, and the ability to gain the support of the machinists and engineers who design and manufacture its products,” the memo said. “The second is the convenience of working with the rhythm of work.”
JPMorgan views West’s stated appreciation for operations as a reflection of Boeing’s primary goal over the next few years: delivering backlogged plane orders to customers.
When asked Luck If Boeing had any comment, a spokesman said the company had nothing to add.
West’s remarks come as the search for a new CEO has taken some turns recently. In March Boeing announced that Calhoun will retire at the end of 2024. Stephanie Pope was also named head of the commercial aircraft division, replacing Stan Deal.
But last month, David Gitlin, the chief executive of Carrier Global and a Boeing director since mid-2022, withdrew from the race for the top job. This is after he turned out to be the leader.
Meanwhile, on the same day that Gitlin withdrew from the election, Calhoun expressed strong support for the leading domestic candidate, Pope. But sources said Fortune Sean Tully said Boeing’s new chairman, Stephen Mollenkopf, and other board members are interested in an outsider with extensive industry experience.
Appearing on the short list of candidates is Pat Shanahan, CEO of Boeing fuselage supplier and contractor Spirit AeroSystems, Tully said.
This comes as Boeing is considering a potential acquisition of Spirit as it seeks to gain greater control over the production process. West noted that Spirit has made good progress in improving operations at its Wichita plant, according to a JPMorgan release.
Earlier this year, Boeing stopped accepting incomplete or non-conforming fuselages, which could contribute to quality problems like the one that led to a panel on an Alaska Airlines flight coming off in mid-air.
West also told JPMorgan there is time to decide how to finance any deal as it could take nine months to a year to close, with the company’s financial picture changing if cash flow and 737 production improve in the second half of the year.