Boeing CEO to Step Down, Another EU Big Tech Probe, China vs. US Chips 3/25/24

Jim Cramer (0:00)

It's Jim Cramer here. You're listening to the opening bell of CNBC's Squawk on the Street. Don't miss a minute of the action.

Dave Calhoun (0:08)

First of all, 100%. Why now?

I've entered my fifth year. The end of this year, I'll be close to 68 years old.

I've always said to the board, and the board has been very prepared, I would give them plenty of notice so that they could understand and plan succession in regular order. And that's what this is about. It's me giving them notice that at the end of this year, I plan to retire. And then them taking the actions that they've taken.

Carl Quintanilla (0:40)

Boeing's Dave Calhoun says he's stepping down as CEO. Good Monday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer at post nine of the New York Stock Exchange. David Faber has the morning off.

Pre-market's red on this final week of Q1 and plenty of activity for a holiday shortened week. That executive shakeup at Boeing. And at least three firms eyeing higher year-end S&P targets. Our roadmap begins with Boeing though. Dave Calhoun stepping down at year-end. Chairman and head of commercial airplanes also leaving in the wake of those ongoing safety concerns. The EU launching a probe into big tech going after Meta, Apple and Alphabet.

And stocks are looking to build on their bull run, both the Dow and the S&P posting their best weeks of the year.

Let's begin though with the shakeup at Boeing in the wake of that company's safety crisis. Jim, we heard Calhoun with Phil and you said, that's predicted.

Jim Cramer (1:26)

Yeah, but I just spoke with David. I think that this is something that kind of had to be done. Not forced necessarily, but the idea that they have to pick someone new. David's gonna stay at the end of the year. It's a long cycle business, that makes sense. But you get someone new in there, maybe you get a little less heat.

I think that the FAA is charging, every single mistake leads back to Boeing, even if it's just someone bumping into a pilot seat. And it's gotten a little extreme. So maybe a fresh face will do something.

Internal candidate, Ms. Pope, which I think is very good. Mollenkopf is a tough guy. I mean, those of us who know Mollenkopf know he was willing to take on Apple when he was at Qualcomm.

He is not the kind of guy who has any allegiance to anyone other than the company. So when you bring someone in like that, he's basically the most honest actor you could find. I remember him just when I did a corporate governance interview with him. And what I was struck by was he just is just, he doesn't bite for dinner. I mean, he just is a good looking. What does that have to be? He's very quiet, but he's very tough.

Carl Quintanilla (2:33)

So the price action this morning is deserved.

Jim Cramer (2:36)

It's indicative of the idea that the problems are now are not on Boeing because they've obviously taken the action that I think a lot of people just feel it's just easier to sacrifice someone. Now, honestly, if it was real sacrifice, obviously they would tell Calhoun to just hit the road. They're not. I think what they're saying is orderly transition. This is a firm, by the way, where it's really hard to have it. You don't want to just have someone go because this is safety, this is planes, this is the gold standard. It's not like they're not making planes anymore. So I think it's gonna work out. Now, they don't have a cash problem. I know that Dave is gonna finish buying Spirit. He will buy Spirit in order to be able to make it so they're in charge of the fuselage.

But I also see the pressures off them. I don't think you're gonna read a story every day about Ms. Pope.

You're just not. You're not gonna say, well, you know what? She's, let's just slag her. So no one's gonna slag her. And Dave is like, on the way out, why do we blame him? I mean, he's done everything he can.

Phil knows more than I do.

Carl Quintanilla (3:37)

Well, your point about Spirit and vertical integration is key because that was a topic in the chat with Phil LeBeau. Speaking of which, Phil joins us this morning with his reflections on the news and the interview. Phil, good morning.

Phil LeBeau (3:50)

Good morning, Carl. And I think what stands out here is the fact that this is a reset for Boeing. Now you could make an argument and I know there will be, I've already heard from people who have said, why isn't Calhoun out right now? Well, he is staying to basically run the day-to-day operations as they work their way through an intense crisis right now. Stephanie Pope will now move into the head position at Boeing Commercial Airplanes. You don't want to just immediately say all-new management because that would probably add even more pressure to the current situation. And this clears the deck for Steve Mollenkopf to lead a CEO search. The last time that Boeing went outside of the company and did an extensive month after month search for the right person, you have to go back to when Jim McNerney was brought in from 3M. And that was a case where they had a couple of situations with Harry Stone, Seifer, Phil Condit, and people were saying, what's the deal here? Can't they get their act together? They brought in Jim McNerney and it was the right choice at the right time. That's the task for Steve Mollenkopf now and the board of directors. And by the way, Dave Calhoun will weigh in in terms of his thoughts about who should be hired in terms of the skillset, not necessarily the person, but in terms of the skillset, what's required.