(CNN) — Dave Calhoun, Boeing’s CEO for the company’s worst year ever, will get to stay around to try to lead the aerospace giant’s rebound for the foreseeable future.
That’s because the Boeing board announced it is raising its executive retirement age. Calhoun just turned 64 this week, and normally the mandatory retirement age for Boeing executives is 65. But the company announced that its board of directors Tuesday extended to age 70 for Calhoun.
The company also announced that CFO Greg Smith is retiring effective July 9. Smith is 54.
Calhoun became CEO in January 2020, about halfway through the 20-month grounding of the 737 Max, which cost the company more than $20 billion, after the board removed predecessor Dennis Muilenburg. He signaled he intended to stay in the job in his first press conference in his job.
“I plan to work well past 65,” he said at that time. “The board can have me as long as they want me.”
The board agreed that Calhoun remains the best man for the job.
“Under Dave’s strong leadership, Boeing has effectively navigated one of the most challenging and complex periods in its long history,” said Boeing Chairman Larry Kellner in a statement. “His dedication to renewing the company’s commitment to safety, quality and transparency has been critical in building regulator and customer confidence as Boeing returns the 737 Max to service. And, in the face of unprecedented challenges brought on by the global pandemic, he has taken proactive actions to ensure Boeing remains strongly positioned for the recovery in the aviation industry.”
Those steps include taking on additional debt to build up its cash reserves, suspending its dividend, and announcing plans to trim 23,000 jobs, mostly at the company’s commercial airplane business. Many of the job cuts have been accomplished through voluntary buyouts rather than involuntary staff cuts.
A rocky tenure
Boeing’s…