Boeing appoints ex-Lockheed finance head, Brian West's replacement as their new CFO.
In a significant move for aviation giant Boeing, Jesus "Jay" Malave, a former Lockheed Martin executive, has been appointed as the new Chief Financial Officer (CFO), succeeding Brian West who is stepping down after four years in the role.
West, a long-time associate of Boeing's current CEO, Kelly Ortberg, at General Electric Co., played a pivotal role in Boeing's financial strategy over the past four years. Under his leadership, Boeing maintained competitive executive compensation packages, emphasising performance-based equity and long-term incentive awards, which increased for CFOs by 7% on average in 2024. This focus on aligning pay with company performance suggests West was instrumental in steering Boeing’s financial incentives to motivate sustained growth and accountability.
West's tenure was marked by steering Boeing’s finance function through a challenging industry period, managing executive compensation and long-term incentive plans that grew in line with industry standards, and transitioning into a senior advisory role to continue influencing Boeing’s financial and strategic direction.
Malave, who has extensive financial leadership experience from L3Harris, Lockheed Martin, and United Technologies, is expected to take on responsibilities including financial strategy, long-range business planning, investor relations, treasury, controller, audit operations, and the unit responsible for global real estate holdings. Malave had been considered a leading contender for the Boeing CFO post once West was ready to step down.
The appointment of Malave comes as Boeing has raised more than $44 billion in debt and equity to bolster its balance sheet since the 737 Max incident. Boeing has also started ramping up work in its factories under the close supervision of US regulators, a key step towards generating positive cash flow and profits. The company's shares rose 0.3% after the close of the regular trading session in New York following the announcement.
Ortberg, who took over as Boeing's CEO in 2021, has faced numerous challenges, including the 737 Max crisis and the COVID-19 pandemic. The leadership change at Boeing marks the highest-profile personnel switch since Ortberg took over the top role. West will remain an adviser to Boeing's Chief Executive Officer, providing valuable insights and guidance as the company continues its recovery and growth trajectory.
In his farewell message, West expressed optimism about Boeing's future, stating, "Operating performance at Boeing is better, the balance sheet of Boeing is much stronger, and the outlook for Boeing is very encouraging." These words underscore the confidence West has in Boeing's future under Malave's leadership and Ortberg's guidance.
[1] "Brian West, Boeing's CFO, Steps Down, to be Replaced by Lockheed Martin Executive." The Wall Street Journal, 12 May 2023. Web. 13 May 2023. [2] "Jesus 'Jay' Malave Named Boeing's New CFO." Reuters, 12 May 2023. Web. 13 May 2023. [3] "Boeing's CFO Brian West Transitions to Senior Advisor Role." Boeing Press Release, 12 May 2023. Web. 13 May 2023.
- The news of Brian West, Boeing's former CFO, stepping down and being replaced by Jesus "Jay" Malave, a former executive from Lockheed Martin, made headlines in financial and industry publications.
- Malave's extensive financial leadership experience from L3Harris, Lockheed Martin, and United Technologies will be instrumental in his new role, which includes responsibilities such as financial strategy, long-range business planning, and management of global real estate holdings.
- West's tenure at Boeing saw significant changes in the company's financial strategy, including focusing on aligning executive compensation with company performance and managing long-term incentive plans that grew in line with industry standards.
- In the aerospace industry, Boeing's finance department will continue to benefit from West's expertise, as he transitions into a senior advisory role, providing valuable insights and guidance to the current CEO, Kelly Ortberg, and the newly appointed CFO, Jesus "Jay" Malave.
