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New CEO search tough for Boeing
www.chinaview.cn 2005-03-09 09:53:33

    BEIJING, Mar. 9 (Xinhuanet) -- Boeing could face a tough time searching for a new chief executive officer after it forced the resignation of Harry Stonecipher, who had engaged in an extramarital affair with an unnamed female executive. 

Harry Stonecipher (File photo)

Harry Stonecipher (File photo)

    Boeing simply cannot afford Harry Stonecipher anymore as it is trying to get favor back from the U.S. Defense Department, its biggest customer. 

    The Pentagon did $30.5 billion of business with Boeing in 2004 out of the company's total revenue of $52.5 billion.

    Boeing said it will search both inside and outside the company for its next chief.

    But the latest scandal could make it more difficult to attract someone from the outside as the company will view any new CEO "under a microscope", analysts say.

    It will be especially difficult to find an outside candidate who has the multinational manufacturing and operational experience needed to head the aerospace giant.

    Among the limited pool of people is board member Jim McNerney, who heads St. Paul, Minn.-based 3M Co. but has experience in aerospace. He once served as head of GE Aircraft Engines.

    On the other hand, a push to find someone who is not possibly linked Boeing's ethical lapses could force the company to pass over internal candidates who are better qualified for the job.

    Top internal contenders speculated to replace Stonecipher are Alan R. Mulally, head of Boeing's commercial plane business, and James F. Albaugh, head of the company's Integrated Defense Systems business.

    Analysts gave mixed reviews on how the latest scandal will affect Boeing's outlook. Enditem

(Agencies)

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