Boeing Commercial Airplanes CEO Scott Carson Announces Retirement in Major Realignment

 - August 31, 2009, 12:07 PM

Boeing Commercial Airplanes president and CEO Scott Carson announced today that he will retire from the company at the end of the year. Boeing chairman, president and CEO Jim McNerney has named Jim Albaugh, 59, to Carson’s leadership role at Boeing Commercial Airplanes (BCA), and Dennis Muilenburg, 45, to succeed Albaugh as president and CEO of Boeing Integrated Defense Systems (IDS). Both appointments take effect September 1. McNerney said that Carson and Albaugh will work together to ensure a smooth transition of customer and other business relationships, and that Carson will assist on special projects for the company through year-end.

Carson, 63, has led BCA since 2006, after two years leading the unit’s sales organization. He previously served as BCA’s executive vice president and chief financial officer, where he led the finance and business strategy organizations, as well as information systems and services. He also held leadership positions in the company’s defense business and was the first president of Connexion by Boeing.

“The Boeing board of directors and I appreciate Scott’s long record of accomplishment across many disciplines, functions and businesses, and the enduring contributions he has made to Boeing through 38 years of service,” said McNerney. “Thanks to his leadership and operational experience, Boeing Commercial Airplanes has performed extremely well in a tough business environment and remains positioned solidly for continued market success.”

Albaugh, a 34-year company veteran, has led Boeing’s defense, space and associated services businesses since 2002. Under his leadership IDS revenue has grown from $25 billion to an expected $34 billion this year, and now accounts for roughly half of Boeing’s annual sales. Before his most recent assignment, he led Boeing’s growth in space and communications, including network-centric operations, global missile defense, combat systems, and system-of-systems technologies. He began his career with Rockwell’s aerospace and defense businesses, which Boeing acquired in 1996.

“Jim is a seasoned and effective aerospace executive with substantial experience leading and integrating technically complex businesses and programs from initial development through full production and delivery. His program management and engineering focus will help ensure the success of BCA’s key development and production programs,” said McNerney. “On top of that, as a Washington state native and the leader of more than 9,000 IDS employees working in the Puget Sound region, he is familiar with the people, issues and programs in the area. He is the ideal leader for BCA at this time.”

Muilenburg moves to his new position from IDS’s Global Services & Support unit, where he served as president of the $8 billion business. Prior assignments include leadership of the Combat Systems Division and Future Combat Systems, the company’s development program for the U.S. Army. He also led the overall engineering development of Boeing’s program to modernize global air traffic management systems.

“Dennis is ready to step up and lead the IDS team,” said McNerney. “His experience in technology integration; track record delivering large-scale programs on time and budget; and work with customers in new, developing markets will help us generate new momentum and long-term growth.”

Albaugh holds bachelor’s degrees in mathematics and physics from Willamette University, and a master’s degree in civil engineering from Columbia University. He will relocate to the Seattle area from St. Louis.

Born in Iowa, Muilenburg earned a bachelor’s degree in aerospace engineering from Iowa State University and a master’s degree in aeronautics and astronautics from the University of Washington. He will continue to work primarily in St. Louis and spend substantial time in the Washington, D.C. area.

Boeing said it would name a replacement for Muilenburg at a later date.