Key Takeaways

  • Boeing announced in a press release on Monday that it has hired former Lockheed Martin finance chief Jesus "Jay" Malave as its next chief financial officer,Malave will succeed Brian West on August 15. According to his LinkedIn profile, Malave served as finance chief at Lockheed Martin for three years, joining the defense manufacturer in January 2022 and stepping down in April of this year.
  • Boeing, headquartered in Arlington, Virginia, said West, who has served as CFO since August 2021, will transition to the role of senior advisor to President and CEO Kelly Ortberg, also effective August 15.
  • "As Boeing makes progress in its recovery, Brian and I believe it is the right time to transition leadership to a new person as we begin the next chapter of the company's growth and development," Ortberg said in an email to employees, which was shared with CFO Dive. "Brian will continue to serve as my senior advisor and oversee a smooth transition as Jay joins."

Deep Dive

The CFO change comes after a turbulent period for Boeing. Ortberg described the past few years in his email as "some of the most defining years in Boeing's history" and praised CFO West's role in guiding recovery efforts.

West "successfully led us through last year's historic capital raise, ensuring our team always had the resources to continue strengthening the critical work of safety and quality across our operations," Ortberg said, referring tothe approximately $22 billion the company raised through a stock offering in October 2024. "I look forward to his continued counsel in his new role."

Before joining Lockheed Martin, West's successor Malave served as senior vice president and CFO at aerospace and defense manufacturer L3Harris Technologies. According to his LinkedIn profile, Malave also gained experience in the aerospace industry, including roles at United Technologies (before its 2020 merger with Raytheon Technologies) and an 11-year tenure at aviation component maker Pratt & Whitney.

The CFO appointment is the latest change in Boeing's executive ranks since Ortberg took the top position last year. According to Bloomberg reporting at the time, five members of his executive team departed shortly after Ortberg took over,including the chief information officer and the head of communications。

On Tuesday, Boeing also announced another executive change,appointing company veteran Stephen Parkeras president and CEO of its Defense, Space & Security (BDS) business, effective immediately, according to a press release. The move comes after Parker took on the role in an interim capacity in September 2024.

Malave will step into the top finance role as Boeing faces scrutiny from the public and regulators overa series of aircraft incidentsand other headwinds in recent years. The company came under stricter scrutiny from federal regulators after a door plug blowout on an Alaska Airlines flight last year. In June of this year, federal investigators accused Boeing of failing to provide adequate training and oversight for its manufacturing operations, leading to the incident, according to The Wall Street Journal.

Malave will join an executive team tasked with both regaining public confidence and restoring profitability, after these incidents and numerous other challenges left the plane maker facing significant financial setbacks. In October of last year, Ortberg announced the company would lay off approximately 17,000 employees and announced a stock offering aimed at cutting costs amid a worsening liquidity crisis, the Associated Press reported.

These moves came as the company facedan ongoing strike by 33,000 machinists, which lasted until a deal was reached in November of last year. The strike exacerbated already strained cash flow and production challenges. Following the Alaska Airlines incident, federal regulators capped production of Boeing's 737 until they had confidence in its manufacturing safety standards, the AP reported. The acting head of the Federal Aviation Administration (FAA) said in early June thatit was not yet ready to lift the cap, according to Reuters.

In recent months, the plane maker has taken steps to regain some ground; in its most recent quarter ending March 31, Boeing narrowedits net loss attributable to shareholders to $37 million, compared to $343 million in the same period last year, according to its financial report. The company also reported revenue of $19.5 billion, up from $16.6 billion in the prior-year period, according to its results.

Boeing also released a 20-year forecast in June, projecting continued strong demand,with its global fleet expected to reach approximately 50,000 commercial aircraft by 2044, according to a company release.

However, the company's safety record came under renewed scrutiny after a Boeing 787-8 Dreamliner (Air India flight)crashed less than a minute after takeoffon a flight to London on June 12, killing at least 270 people, the BBC reported.

"We extend our deepest condolences to the loved ones of the passengers and crew on Air India Flight 171 and to all those affected in Ahmedabad," CEOOrtberg said in a company statement at the time. "I have spoken with Air India Chairman N. Chandrasekaran to offer our full support, and the Boeing team is ready to support the investigation led by India's Aircraft Accident Investigation Bureau."