Boeing for the first time tapped an outsider to run its highly profitable Commercial Airplanes division.
Kevin McAllister, 53, was named as CEO and president of the division last month. He joins Boeing after 27 years with GE Aviation, one of Boeing’s biggest suppliers, where he served as president and CEO since 2014. McAllister replaces Ray Conner, 61, who will retire next year after leading Boeing Commercial Airplanes since 2012.
The division is based in Tukwila, and most of its operations are in Western Washington, including factories in Everett and Renton.
Here are four things to know about McAllister:
1. Boeing’s shaking things up
At least one analyst called it a surprise move by Boeing CEO Dennis Muilenburg.
“Muilenburg is shaking up (Boeing Commercial Airplanes) with a surprise outside appointment which is likely a healthy move given that fresh leadership eyes can create positive movement,” analyst Peter Arment from Baird Equity Research told Reuters.
Another analyst, Richard Aboulafia, vice president of the Teal Group, told The Herald that McAllister is highly respected in the industry.
McAllister had a front-row seat to see “both the challenges and failures of the 787,” Howard Rubel, an aerospace analyst at Jeffries, told Bloomberg.
“So he knows how hard it is to run an airplane company.”
2. Background in engineering
McAllister joined GE Aviation in 1989 and held various materials engineering leadership roles supporting product design, manufacturing, component repair and technology development, according to his GE Aviation biography.
He’s a graduate of the University of Pittsburgh, where he earned a bachelor’s degree in materials engineering.
He rose through the ranks at GE. As vice president and general manager of global sales and marketing at GE Aviation since 2008, he was credited with delivering record backlog growth for the nearly $25 billion GE business.
He took over GE Aviation two years ago.
3. Familiar with Boeing
In a video to Boeing employees, Muilenburg praised McAllister as someone who is already deeply familiar with the company. “He’s been a strong partner of Boeing for many, many years,” Muilenburg said. “Most importantly from a cultural standpoint, he’s a great fit.”
McAllister echoed the sentiment.
“I’ve had the opportunity to work with a lot of folks at Boeing,” McAllister said. “I’m not new to Boeing. In the last 15 years both in supporting products out in the field, working with customers and in the trenches of campaigns to go out and win.”
4. Excited about job
McAllister said in the video message he was “humbled and honored” to join this incredible Boeing team.
McAllister said that his wife told him how much he looked forward to the new job: “Kevin, you light up like I haven’t seen you light up when you talk about Boeing.”
He will receive 120,000 shares of stock in the company that vests over the next decade, according to a Securities and Exchange Commission filing.
The first 20,000 shares vest next year, another 25,000 in 2021, another 50,000 in 2023 and the final 25,000 in 2025.
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
