A Boeing 737 MAX aircraft sits on the assembly line at the company’s facility in Renton, Washington.
Jennifer Buchanan/Seattle Times via AP
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Jennifer Buchanan/Seattle Times via AP
WASHINGTON — After a lengthy search, Boeing has selected aerospace industry veteran Robert “Kelly” Ortberg as the company’s next CEO. announced Wednesday.
Ortberg will start on August 8, replacing retiring CEO Dave Calhoun, who has come under criticism for the company’s struggling commercial aircraft and defense programs.
Boeing will now turn to Ortberg to lead its restructuring plans. He has a background in engineering, not finance, having earned a degree in mechanical engineering from the University of Iowa. That could help assuage critics who say Boeing’s leadership has focused too much on financial results and not enough on engineering quality.
“I am deeply honored and humbled to join this iconic company,” Ortberg said in a statement. “Boeing has a rich and storied history as a leader and pioneer in our industry, and I am committed to working with the company’s more than 170,000 dedicated employees to continue that tradition, with safety and quality as our top priorities. There is much work to be done, and I look forward to getting started.”
The job Ortberg faced was daunting. Boeing reported Boeing Co. reported a wider quarterly loss and weaker revenue than analysts expected in the second quarter. The aerospace giant reported a net loss of $1.44 billion in the second quarter, as tighter monitoring of its production lines limited output of its best-selling 737 Max jet.
“Despite a challenging quarter, we are making significant progress in strengthening our quality management system and positioning our company for the future,” Calhoun said. “While we still have work ahead, the steps we are taking will help stabilize our operations and ensure Boeing is the company the world needs.”
Boeing Chairman Steve Mollenkopf announced the new CEO in a message to employees.
“The board has conducted a comprehensive and extensive search process over the past several months to select Boeing’s next CEO, and Kelly has the skills and experience to lead Boeing into the company’s next chapter,” Mollenkopf wrote. “He is an experienced, deeply respected aerospace leader with a well-deserved reputation for building strong teams and running complex engineering and manufacturing businesses.”
Ortberg, 64, is just a few years younger than the company’s outgoing leader. Boeing’s board had previously extended the mandatory retirement age from 65 to 70 to allow Calhoun, now 67, to remain CEO.
Ortberg’s career in aerospace began at Texas Instruments. He joined Rockwell Collins in 1987 and rose to CEO in 2013. He oversaw mergers with United Technology and RTX (formerly Raytheon) before retiring from the company in 2021.
