Boeing's bad week in Washington: US lawmakers push CEO to resign, investors wait for Max approval
Some analysts and experts say replacing Muilenburg in the middle of this crisis could cause more uncertainty and drag out even more the all-important task of getting the 737 Max flying again. Boeing is facing a host of investigations about the plane's development and certification by regulators, including a Justice Department probe.
"I think he's the right person right now, given he's worked through this process and the changes that need to be done to make the improvements necessary to get it ungrounded," said Jeff Windau, a Boeing analyst at Edward Jones. "After that point, it depends on the view of the board." Despite the two fiery hearings, Boeing shares ended the week up 1.6%, slightly more than the broader market. Shares have lagged the broader market so far this year but are still up 7% as of Friday's close.
"My take has been all along, the ultimate arbiter is the share price," said Ron Epstein, Boeing analyst at Bank of America Merrill Lynch, who added that some investors have asked him whether Muilenburg will be replaced. "If you were to see the shares meaningfully under-perform for a while, that's when the pitchforks come out."He said replacing him now "is one more disruption" and that "it doesn't make it easier" to move forward.
"Committee members were prepared with pointed but reasonable questions for BA, and some displayed clear anger with what they viewed as obfuscation of the culture behind decisions that undermined MCAS and the MAX," wrote Credit Suisse in a note after the hearings. "That said, we found the exchange to be largely as expected: hardline questioning from members with a sympathetic but tactical responses from Boeing.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Peugeot’s Bold CEO to Take the Wheel in Deal With Fiat ChryslerCarlos Tavares negotiated a nearly $50 billion merger with Fiat Chrysler that, if completed, will mark one of the biggest auto-industry deals in decades and leave him CEO of the combined company.
Read more »
Prosecutors Face Complex Path to Charging Boeing Over 737 MAXTo bring a successful criminal case against Boeing, prosecutors would have to show that executives repeatedly concealed or ignored the 737 MAX’s engineering problems, experts said.
Read more »
I spend every weekend observing art, and it's made me a better CEOGoing out to see art — and putting down your work — can help you reset and engage in ideas more creatively.
Read more »
Airbnb CEO says company is banningAirbnb Inc. says it's banning 'party houses' in the wake of a deadly shooting at an Airbnb rental in California
Read more »
When Things Get Tough, Companies Split Chairman, CEO RolesThe number of big U.S. companies separating the top roles is at record levels.The moves inside some of America’s biggest boardrooms occurred only after a crisis or shareholder pressure forced the change.
Read more »
Mars CEO: Automation means 'massive obligations' to workers - Business InsiderAutomation is radically transforming businesses, with McKinsey estimating that as many as one-third of American jobs will disappear by 2030.
Read more »