Boeing chief executive resigns

Boeing Chief Executive Harry Stonecipher has stepped down from his post following a request for his resignation from the company.

Mr Stonecipher's resignation followed a company investigation into "a personal relationship" with a female executive of the company, who did not report directly to him.

The Board of Directors decided Mr Stonecipher's actions were "inconsistent" with the company's code of conduct.

The investigation was ordered after the Board Chairman, Lew Platt, received "anonymous information" which was sent to him, as well as Boeing's legal and ethics leaders, ten days ago.

The investigation concluded that the relationship was consensual and had not affected the conduct of the company's business. It also ruled that the female executive's career and compensation were not influenced by the relationship.

Commenting on the situation, Mr Platt said: “The Board concluded that the facts reflected poorly on Harry’s judgment and would impair his ability to lead the company. The resignation was in no way related to the company’s operational performance or financial condition, both of which remain strong. However, the CEO must set the standard for unimpeachable professional and personal behaviour, and the Board determined that this was the right and necessary decision under the circumstances."

Boeing announced that the firm's chief financial officer, James A. Bell, 56 has been appointed as president and CEO on an interim basis. It was also announced that Lew Platt would assume "an expanded role" in his capacity as non-executive chairman. Mr Stonecipher will also vacate his position on Boeing's Board of Directors.

Mr Platt added: “I know this is difficult news for everyone associated with Boeing, but we have strong leaders driving our businesses, and strong teams of employees driving performance. At the same time, we are committed to strong ethical leadership. Everyone should know that if we see any improper activities, we will take decisive action.”

(KMcA/SP)