Boeing: Can A New CEO Fix A Broken Corporate Culture?

Summary:

  • Boeing’s prolonged crisis stems from deep-rooted cultural issues, exacerbated by the 737 MAX 8 disaster and subsequent leadership failures.
  • New CEO Kelly Ortberg promises cultural change, but faces significant challenges, including a costly labor strike and systemic issues.
  • Investors should brace for a long, expensive turnaround, with potential short-term trading opportunities via cash-secured put options.
  • Boeing’s recovery hinges on meaningful cultural transformation, making it a risky bet for some time.

Boeing Manufacturing Facility and Logo

Wolterk

The Boeing Co. (NYSE:BA) has seen better days. The venerable aerospace giant has been in the throes of a multi-year crisis of confidence.

The proximate cause of Boeing’s litany of woe was the revelation in 2019 that it


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