Boeing said chief financial officer Brian West, who helped orchestrate one of the biggest capital raises in US corporate history last year to steady the crisis-stricken planemaker, is stepping down.
Mr West is leaving the post in mid-August and will be succeeded by former Lockheed Martin executive Jesus “Jay” Malave. Mr West will remain an adviser to chief executive Kelly Ortberg, Boeing said in a statement on Monday.
Both moves are effective August 15th, the company said.
The leadership change marks the highest-profile personnel switch since Mr Ortberg took over the top role at the planemaker last year. Mr West helped Mr Ortberg navigate a capital squeeze and avoid a possible ratings downgrade to junk status, brought on by a crippling strike last year and a steep slowdown in output after a near-catastrophic accident.
“I just felt like it was the right timing to pass the baton,” Mr West said in an interview. “The balance sheet is much stronger, operating performance is better, outlook is very encouraging.”
Boeing shares rose 0.3 per cent after the close of the regular trading session in New York, paring an earlier 2.3 per cent loss. The stock has gained 18 per cent so far this year.
A long-time associate of former Boeing CEO Dave Calhoun at General Electric, Mr West kept watch over the company’s finances as it weathered post-Covid supplier and quality setbacks.
Mr West was instrumental in shoring up Boeing’s cash reserves with a $24 billion equity sale last year, a near-record for a public company. He added to the stash this year by overseeing the $10.6 billion auction of the Jeppesen unit and other digital assets.
In all, Boeing has raised more than $44 billion in debt and equity to bolster its balance sheet since a near-catastrophe on an airborne 737 Max in early 2024 triggered federal investigations and a leadership overhaul. The company has begun ramping up work in its factories under the close supervision of US regulators, a key step towards generating positive cash flow and eventually profits.
Mr Ortberg and Mr Malave briefly overlapped late last decade at United Technologies, the aerospace manufacturer now known as RTX. Mr Ortberg ran the Collins Aerospace division while Mr Malave served as vice president and chief financial officer of its Carrier division.
Subsequent stints at L3Harris and Lockheed won Mr Malave support in the analyst community, and he had been considered to be a leading contender for the Boeing CFO post once Mr West was ready to step down. Mr Malave left Lockheed Martin days before its April earnings call, advising the company he was “pursuing other opportunities”, according to a statement by the defence company.
Mr Malave’s responsibilities will include heading Boeing’s financial strategy, long-range business planning, investor relations, treasury, controller and audit operations, as well as the unit responsible for its global real estate holdings. He will report to Mr Ortberg and serve on the company’s executive council.
“We’re on a nice, steady, predictable path towards recovery, while not pushing too hard,” Mr West said. “It’s turned out a little bit better than we even expected.” - Bloomberg
