Mon, Mar 07, 2005
Board Appoints James Bell Interim President and CEO; Lew Platt
to Expand Role
Taking the aerospace
world by surpise, Boeing has announced that its Board of Directors
asked for and received the resignation of President and CEO Harry
Stonecipher on Sunday, March 6. Concurrently, the Board has
appointed CFO James A. Bell, 56, as president and CEO on an interim
basis, with Board Chairman Lew Platt assuming an expanded role in
his capacity as non-executive chairman. Stonecipher will also leave
the company's Board; all changes are effective immediately.
Boeing's Statement
The Board actions were taken following an investigation by
internal and external legal counsel of the facts and circumstances
surrounding a personal relationship between Stonecipher and a
female executive of the company who did not report directly to him.
The Board determined that his actions were inconsistent with
Boeing's Code of Conduct.
"The Board concluded that the facts reflected poorly on Harry's
judgment and would impair his ability to lead the company," said
Platt.
"The resignation was in
no way related to the company's operational performance or
financial condition, both of which remain strong. However, the CEO
must set the standard for unimpeachable professional and personal
behavior, and the Board determined that this was the right and
necessary decision under the circumstances," he said.
The Board ordered an immediate and comprehensive investigation of
the matter after Platt received information that was sent
anonymously to him and to the company's legal and ethics leaders 10
days ago. The investigation determined the relationship was
consensual and had no effect on the conduct of the company's
business. The investigation also determined that neither the career
nor the compensation of the female executive was influenced by this
relationship.
Bell is a 32-year veteran of the company who has served as Boeing
CFO and as a member of the company's Executive Council since
November 2003. He oversees all company financial matters and will
continue in this role during the interim period.
The Board has a robust succession planning process in place and
will accelerate the search for a permanent CEO. Candidates both
inside and outside the company are being considered. Bell, who is
not a candidate, will serve until the process is completed.
"Boeing is in excellent shape with significant momentum due in
large part to Harry's forceful leadership," said Bell. "We have a
clear strategy that has us well positioned for future growth.
Continuing his focus on execution is my top priority."
"I know this is difficult news for everyone associated with
Boeing, but we have strong leaders driving our businesses, and
strong teams of employees driving performance," Platt said. "At the
same time, we are committed to strong ethical leadership. We have
fought hard to restore our reputation. Everyone should know that if
we see any improper activities, we will take decisive action."
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