John BIERS -
Throughout a storied career in corporate America, David Calhoun has risen through the ranks at General Electric, taken Nielsen Holdings public and helped manage private equity giant Blackstone.
Calhoun, 62, who is set to become chief executive of Boeing in January following a shakeup announced on Monday, will need all of his wiles as he takes the helm at the troubled aerospace giant mired in crisis after two deadly crashes on its best-selling jet.
Boeing announced that Calhoun would shift from chairman to CEO after it ousted Dennis Muilenburg, who stumbled over the company’s response to the disasters, alienating regulators, customers and victims’ families.
The crisis led to last week’s decision to suspend production of the 737 MAX, which provoked uncertainty in employees and suppliers, as well as hitting US growth forecasts, with no clear indication of when the aircraft will be clear to fly again.
In Calhoun, Boeing has found a man who once led GE Infrastructure and who has experience with corporate turnarounds at both Nielsen and Blackstone.
But his background is in financial management and corporate strategy rather than engineering and the nitty-gritty of safety policy, leading some analysts to question whether he will turn out to be an interim leader to get Boeing through a bad period while it attempts to restore its reputation and win approval to return the MAX to the skies.
After studying accounting at Virginia Tech, Calhoun joined GE’s corporate audit staff in 1981, the start of a nearly four-decade career where he ultimately lead GE Infrastructure, a division that oversaw aircraft engines, rail, among other units.
The executive left GE in 2006 to lead VNU Group, which later became Nielsen Company, going public in 2011.
At Blackstone Group, where Calhoun has worked since January 2014, he has focused on boosting the value of company holdings, telling Bloomberg in 2017 interview that he prefers when a leadership team “plays offense instead of defence.”
Jim Hall, the former head of the National Transportation Safety Board, said the shakeup at Boeing was a positive development, calling Muilenburg’s departure “long overdue.”
But Hall said it was not clear whether Calhoun was a long-term choice, adding “If he’s going to do it long-term, I would think that someone who has more knowledge of aeronautical the industry —hands-on experience — might be a good choice.” — AFP
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