Boeing’s CEO Search Results in a Lucrative $150 Million Offer for Carrier Chief Dave Gitlin

Boeing’s search for a new CEO has reportedly culminated in a lucrative offer to Dave Gitlin, CEO of Carrier Global, potentially exceeding $150 million, as Boeing aims to revitalize leadership following a series of crises. Following a critical incident involving an Alaska Airlines flight on January 5, where a door-plug blowout occurred at 16,000 feet, Boeing’s board reevaluated its leadership succession plans. Initially, Stephanie Pope, marked as the heir apparent to CEO David Calhoun, was in line for the role. However, the incident diminished Calhoun’s influence and led to a shift in the board’s strategy.

In late March, Boeing announced Calhoun’s impending departure by the end of the year and initiated a change in the chairman position, with Larry Kellner stepping down to be replaced by Steve Mollenkopf. Amid these shifts, the board expressed a preference for a manufacturing expert over a financial specialist like Pope, aiming to address Boeing’s tarnished reputation and restore its stature in aerospace manufacturing.

Dave Gitlin, with a robust background in aerospace during his tenure at United Technologies Corp and as the leader of Carrier, emerged as a frontrunner. His successful track record at Carrier, where he significantly increased the company’s market cap and shareholder returns, made him a prime candidate. Under his leadership, Carrier’s performance in cash operating return on assets (COROA) impressively highlighted his managerial acumen and sector knowledge.

Despite Boeing’s interest, Gitlin decided to remain with Carrier, underscored by a substantial retention package revealed in a January 30 SEC filing following Carrier’s Q1 earnings call. This package, aimed to ensure his continued leadership amid strategic shifts at Carrier, included performance share units and stock appreciation rights potentially valuing the package at around $200 million if performance targets are met.

This decision reflects the competitive nature of the market for high-profile CEOs and underscores the challenges Boeing faces in attracting top talent amidst its ongoing struggles. Gitlin’s choice to stay with Carrier, coupled with the lucrative incentive to do so, highlights the broader implications for Boeing as it continues its search for a leader capable of steering the company through its complex challenges.

Sources: AirGuide Business airguide.info, bing.com, fortune.com