Former Qualcomm chief Steve Mollenkopf will make his first
public appearance as chairman at the virtual gathering. Boeing is dealing with
a sprawling crisis that includes multiple investigations, possible prosecution
for past actions and slumping production of its strongest-selling jet.
Mollenkopf is leading the search to replace Calhoun, who
said he would retire by year-end as part of a management shakeup following a
January mid-air blowout on a new 737 MAX 9.
“I would think it’s going to be a rougher ride, this AGM,”
said David Duffy, co-founder and director of the Dublin-based Corporate
Governance Institute, in reference to Mollenkopf.
“Most (attendees) are institutional investors who want to
know, ‘Can you give us some sort of commitment you’re going to sort this place
out and what you hope to achieve within a certain space of time?’ What he says
in the AGM is going to be important, not just for investors but passengers.”
Boeing shares have plunged 30% this year.
Proxy advisor Glass Lewis has recommended shareholders vote
against the reelection of Calhoun and two other directors to Boeing’s board,
citing dissatisfaction over efforts to transform the planemaker’s safety
culture.
Separately, proxy advisor ISS flagged a misalignment between
CEO pay and company performance, arguing that investors should not support a
non-binding advisory vote on compensation.
Tony Bancroft, portfolio manager at Gabelli Funds, which
owns shares in Boeing, said he believes Calhoun’s pay package is in line with a
company of Boeing’s size.
Investors have also been waiting to hear progress on
choosing Calhoun’s successor. Management experts said the company needs to find
a new leader by mid-year as its current leadership does not have the
credibility to make bold changes.
“Boeing cannot get back on track until its board appoints a
new CEO from outside the company with a technical background and a deep
understanding of aerospace technology,” said Bill George, former Medtronic CEO
and a Harvard professor of management practice.
Bancroft said Pat Shanahan, CEO of Boeing supplier Spirit AeroSystems, would be a “great option” as the next CEO. Other possible successors flagged by analysts or sources have included Boeing board member and Carrier boss David Gitlin and American Airlines Chairman Greg Smith.