Ron Epstein, senior aerospace analyst at Bank of America, weighs in on the current state of the aerospace giant Boeing as the company names their new CEO.
Boeing has tapped Robert “Kelly” Ortberg as its incoming chief executive, naming an industry veteran with an engineering background to right the ship at the embattled aerospace giant.
Ortberg, 64, is set to take the reins from outgoing CEO Dave Calhoun on Aug. 8, and will also serve as president and as a member of the board.
Kelly Ortberg stands for a photograph at the Rockwell Collins’ production facility in Manchester, Iowa, on Aug. 31, 2016. (Photographer: Daniel Acker/Bloomberg via Getty Images / Getty Images)
After obtaining a bachelor’s degree in mechanical engineering from the University of Iowa, Ortberg began his career as an engineer at Texas Instruments in 1983. Since then, he has accumulated more than 30 years’ experience in aerospace and defense, including numerous executive roles.
BOEING NAMES KELLY ORTBERG AS NEW CEO
Ortberg joined Rockwell Collins as a program manager in 1987, rising through the ranks for decades and eventually becoming its president and CEO in 2013. After five years leading Rockwell Collins, Ortberg steered the company’s integration with United Technologies and RTX, formerly Ratheon, until his retirement from RTX in 2021.
Signage outside the Boeing Co. manufacturing facility in Renton, Washington, on Feb. 5, 2024. (David Ryder/Bloomberg via Getty Images / Getty Images)
Ortberg’s experience in integrating acquisitions such as steering Collins through an $8.3 billion deal to purchase BE Aerospace in 2016 will face a fresh test at Boeing. The planemaker is working to integrate Spirit AeroSystems into its fold after clinching a deal earlier this year to buy back the fuselage maker.
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Ortberg’s appointment also addresses an industry push for hiring an outsider to steer Boeing out of its troubles. He was chosen over Patrick Shanahan, a former Boeing executive and current CEO of Spirit AeroSystems who was seen as a favorite to succeed Calhoun by some analysts and investors.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 178.31 | -12.29 | -6.45% |
Ortberg will receive a long-term incentive award targeted at $17.5 million, according to an SEC filing. He will get an annual base salary of $1.5 million, an annual incentive award target of $3 million and a $1.25 million cash payment in December.
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He plans to be based in Seattle, near Boeing’s 737 Max and 777 factories.
Reuters contributed to this report.
