There are people who just know what they want to do with their lives from Day One. Boeing CEO Dennis Muilenburg is one of those people. As you read down this list of unique things about his life, ask yourself how many people have been so focused with the commensurate achievements.
1. His career began as an internship with none other than Boeing.
That was back in 1985 when he was an aerodynamics intern after earning both an undergraduate degree in Aerospace Engineering and a graduate degree in Aeronautics and Astronautics. These days, internships are usually done as a student but Muilenburg seemed to have made the best decision if history is any indication.
2. He worked on the once fabled Joint Strike Fighter.
He was the leader of the weapons systems development area of the X-32, but that was not the reason Boeing lost out to Lockheed Martin. The performance problems were due to engine overheating, significantly reducing the X-32’s ability to maintain fighting capability.
3. He is familiar with the Washington D.C. political environment.
Boeing opened up an Air Traffic Management business in the area and ended up working with the FAA and the controller’s union. During his time in Washington he also worked with other airlines and has been credited with modernizing today’s air traffic control systems. You can’t stay long in Washington without picking up some essential politicking skills.
4. He has a history of dealing with jet fighter combat systems.
Adding to his experience in the X-32 program, he was instrumental in developing the Boeing Combat and Future Combat Systems. Though the technology was developed about 2 decades ago, it has proven itself over time and a good chunk of it is still used in Boeing’s defense portfolio in the development of fighter jets.
5. Muilenburg was critical in expanding Boeing’s global business footprint.
Once he was put in charge of the company’s Defense, Space and Security’s Global Services and Support division, it found its market share growing significantly. He worked out a collaborative relationship with the company’s Commercial Aviation Services that would increase the efficiency of the division. You can likely credit his accomplishments in part due to his Washington D.C. tenure.
6. He latched on to several significant government contracts in a difficult economic environment.
Despite an economic downturn, Muilenburg was key in getting awarded contracts for the Air Force Tanker program as well as aircraft and space contracts that would grow his division to include 53,000 employees and add $31 billion to Boeing revenues.
7. He would rise to become a member of Boeing’s Executive Council.
Once he arrived to become the President and Chief Operating Officer of Boeing, his positions gave him a clear view of the day-to-day operations of the company. He then focused on the broader company growth challenges and relationships with the customer base. This was a shift from his earlier years of involvement on the technical end of Boeing, and would be a bridge to take on his current responsibilities as CEO.
8. He believes Boeing will lead the way to Mars.
Not only does he believe it will be a Boeing powered rocket that will get humans to set foot on Mars, but he thinks it will happen within the next 10 years. Some may say that is a bit optimistic, but given Muilenburg’s significant technology background it is dangerous to argue with him!
9. His academic background continues to grow.
Clearly Muilenburg’s academic background is in aerospace technology, but he went to Iowa State and then to the University of Washington for his graduate studies, moving to a place he would soon call his career home. However, Iowa State has also awarded him an honorary Doctor of Science degree in view of his considerable contributions to aerospace technology.
10. He is committed to public service in a number of ways.
Currently, he is serving on the Association of the United States Army Council of Trustees as well as the University of Washington Board of Trustees. Add to that his Associate Fellowship with the American Institute of Aeronautics and Astronautics and Royal Aeronautical Society, and it is not hard to tell that being an aeronautical engineer has been one of his career goals even before graduating from high school.
Published Mon, Dec 23 2019 3:51 PM ESTUpdated Wed, Dec 25 2019 9:18 AM EST
- Boeing announced Chairman David Calhoun will replace David Muilenburg as CEO next year.
- Calhoun has been on the company's board for a decade but unlike Muilenburg, he isn't an engineer.
- The change comes as the company is grappling with the fallout of two fatal crashes of the 737 Max.
Dave Calhoun, Chairman of Boeing
Adam Jeffery | CNBC
Boeing's incoming CEO, David Calhoun, a 10-year board member, is inheriting a company in crisis, as the nation's top exporter navigates the fallout from two crashes of its bestselling 737 Max planes. Analysts painted a picture of Calhoun as a logical choice to right the ship.
Boeing ousted CEO Dennis Muilenburg, announcing Calhoun as his replacement on Monday, as the grounding of the 737 Max is set to drag well into 2020. The shakeup comes as comments made by top Boeing leaders, including Muilenburg, strained the manufacturer's crucial relationship with the Federal Aviation Administration, which certifies the company's planes as safe for the flying public.
Calhoun's goals include improving transparency with its airline customers and regulators, according to a person close to Boeing's board and Calhoun's strategy. Boeing and top management have been sharply criticized by regulators, airline customers and some crew members for failing to provide sufficient information about the aircraft and the company's process to get it back in the sky.
Calhoun, 62, is no stranger to crises nor to aviation. His more than two-decade career at General Electric included a stint at the company's important aviation unit, a job he took months before the Sept. 11, 2001, attacks roiled the airline business.
He has sat on Boeing's board for a decade, including as the 737 Max was under development, so he is familiar with the mistakes related to the troubled plane.
"He's not new blood," said Bank of America Merrill Lynch senior aerospace and defense analyst Ron Epstein. "He seems like a capable manager, but he was on the board when all the decisions were made."
Taking the reins of a sprawling company whose businesses span commercial airplanes, defense, services and space as it grapples with the biggest crisis in its more than 100-year history will be an immense challenge for Calhoun.
Calhoun's challenges don't stop with convincing regulators the Max is safe to fly. The company has suffered delays in the development of its 777X wide body aircraft. Demand for larger planes has dropped and Boeing announced a cut to its 787 production from 14 to 12 a month "given the current global trade environment." Boeing is also facing a general slowdown commercial aircraft demand since a mid-decade peak.
Still, Wall Street applauded the shakeup, sending shares up 3% as of Monday afternoon, a sign investors expect Calhoun to help the company though these challenges. One top airline executive told CNBC he welcomed the news as a positive step forward.
Calhoun has most recently been an executive at Blackstone Group, overseeing portfolio operations at the private equity giant. Prior to joining Blackstone, he was CEO of Nielsen Holdings, the data analytics and measurement firm, from 2010 to 2014, after leading its marketing research firm, The Nielsen Company. Calhoun is also on the board of Caterpillar and serves as chairman of Gates Industrial.
"Putting in place a world-class leader like Dave at the helm of Boeing is good for the company and important to the country," Blackstone CEO Steve Schwarzman said in a statement. "His experience driving growth across Blackstone's diverse portfolio speaks to his unusual capabilities as a CEO, which will serve him well in this complex situation."
Calhoun, who officially takes over on Jan. 13, will be consumed with ensuring the 737 Max can fly again. The company has sold more than 4,000 of the planes, and its revenue stream into the next decade is highly dependent on it.
Regulators have repeatedly said they have no timeline to approve the planes, which they grounded in mid-March after the second fatal crash in less than five months. Together, the two crashes killed 346 people.
Calhoun became chairman of Boeing's board in October, when the company stripped Muilenburg of the dual role. But Calhoun will relinquish that title; former Continental Airlines CEO Larry Kellner is taking that spot, effective immediately.
Boeing has been highly criticized for its handling of the crisis as well as for failing to include enough safeguards on the planes before they were sold. That has raised questions about Boeing's internal culture, whether the company cut corners and whether federal regulators were too cozy with the company.
"I do not believe that instance, that isolated instance, is indicative of a cultural problem, I have not seen that in the many touches that I, that I have had," Calhoun said in a November interview on CNBC.
The latest batch of internal documents Boeing handed over to the House Committee on Transportation and Infrastructure, which is investigating the company and the 737 Max approval by the FAA, revealed a "very disturbing picture" of employee concerns over safety, a committee aide said Tuesday. Others showed worries about "efforts by some employees to ensure Boeing's production plans were not diverted by regulators or others," the aide added.
Some of the documents included messages from former lead test pilot at Boeing, Mark Forkner, according to people familiar with the matter. Forkner in a previously disclosed message expressed concerns about a flight-control system that was implicated in both crashes, during a simulator session. In others he boasted about "jedi mind-tricking regulators," and instructing the FAA to delete mentions of the flight-control software, which was erroneously activated on both deadly flights, from manuals.
Calhoun, unlike Muilenburg, is not an engineer. But a lot of Boeing's problems this year have stemmed from poor communication, particularly its handling of the crashes and its ever-shifting timeline for when the planes would fly again.
"Even its engineering, 80% is human," said Richard Aboulafia, an aerospace analyst at Teal Group. Calhoun "is better at handling the outside world."
Aboulafia added that Calhoun may be what Boeing needs to stem its crisis but perhaps not as a long-term CEO.
"Long term: not the answer," he said.
— CNBC's Amelia Lucas contributed to this article.