Boeing's Outgoing CEO Dave Calhoun Reelected To Board Despite Safety Concerns At Company

Boeing Co BA shareholders re-elected outgoing CEO Dave Calhoun to the company’s board of directors on Friday, contrary to the advice of proxy adviser Glass Lewis. Calhoun had earlier announced his retirement by the end of the year.

What Happened: Lewis in April recommended shareholders to vote against the reelection of Calhoun, together with Akhil Johri and David Joyce, citing discontent with how they addressed safety and regulatory concerns at the company.

Joyce and Johri were also re-elected on Friday at the company’s annual shareholder meeting, according to a preliminary tally.

Boeing chairman Steve Mollenkopf told shareholders on Friday that the company has consulted investors and its clients regarding Calhoun’s successor.

Why It Matters: In January, a door plug panel flew off an Alaska Airlines plane manufactured by Boeing soon after take off. The incident forced the pilots to make an emergency landing.

Since then, Boeing has been at the receiving end of severe regulatory scrutiny including from the Justice Department. Boeing said in March that its CEO Dave Calhoun will step down by the end of the year. The company also appointed Stephanie Pope as the new head of its commercial airplanes division, replacing Stan Deal.

The Justice Department has also accused Boeing of breaching its 2021 settlement regarding the company’s involvement in two fatal 737 Max crashes.

Price Action: Boeing shares closed nearly 2% higher at $184.95 on Friday. However, the stock is down nearly 27% year to date, according to data from Benzinga Pro.

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