Boeing had one heck of a challenging 2024, and former CEO Dave Calhoun felt the brunt of it.
On Jan. 5, a door plug blew off a Boeing 737 Max 9 operated by Alaska Airlines in mid-flight. No one was injured, but the incident led to the grounding of 171 planes in the U.S. of that aircraft model for most of the month, significantly affecting Alaska and United Airlines.
The National Transportation Safety Board and U.S. Federal Aviation Administration started investigations, with the latter taking new oversight actions into Boeing's operations. The aircraft manufacturer appointed a special advisor to Calhoun, and they along with a team of outside experts would conduct an assessment of Boeing's quality management system, including commercial suppliers.
The NTSB in February found that "missing" bolts appeared to be the cause of the door-plug incident, and the FAA in early March found Boeing and its third-party supplier Spirit AeroSystems "allegedly failed to comply with manufacturing quality-control requirements."
At that time, the FAA also launched a new investigation after United experienced a stuck rudder pedal on the 737 Max 9 a month earlier. At least seven additional incidents involving Boeing aircraft occurred between the Jan. 5 event and the end of March, according to a Newsweek report.
By then, the Department of Justice launched a criminal investigation. But Boeing's problems began long before these events. Calhoun took over in January 2020 after the former CEO resigned following two high-profile Boeing 737 Max 7 crashes in October 2018 and March 2019. Aggressive cost-cutting and rocky leadership changes for 25 years eroded the culture at the company, at least according to a Harvard Business School analysis.
But for now, Calhoun was in the hot seat, especially after the NTSB chairwoman told the Senate Commerce Committee that Boeing had not provided crucial information needed to fully conduct their investigation.
Boeing in April paid Alaska $160 million in "initial compensation" for the January incident. By then, Calhoun had announced he would step down as CEO at the end of 2024. But by the end of July, Boeing announced a new CEO, Robert "Kelly" Ortberg, who would take over Aug. 8. Calhoun was out.
Many carriers, however, still are feeling the pains of Boeing aircraft delays, with the 737 Max 10 still awaiting certification. United Airlines has backed off its orders for that model, and Delta Air Lines now says it won't receive its first one until 2026. Southwest Airlines, an all-Boeing operator, also has cut its expectations of Max deliveries. These delays mean carriers can't necessarily expand their networks or add capacity where and when they want.
In the meantime, Calhoun received nearly $33 million in 2023, a record for a Boeing CEO and a 45 percent increase over his 2022 compensation. At the time of his departure announcement, Fortune estimated he could walk away with $24 million, and up to $45.5 million more if Boeing's stock goes up 37 percent. Talk about a golden parachute.