Good morning. CFO turnover at major companies continues.
Brian West will step down as CFO of The Boeing Company in mid-August and become a senior advisor to President and CEO Kelly Ortberg, the aircraft company announced Monday. Jesus “Jay” Malave has been appointed EVP and chief financial officer, effective Aug. 15. He was most recently CFO of Lockheed Martin.
West, Boeing’s finance chief for the past four years, was appointed by former CEO Dave Calhoun in 2021. After the highly publicized door-plug blowout over Portland, Oregon, on Jan. 5, 2024, Calhoun announced in March that he would retire by year-end. He was succeeded by Ortberg, who became CEO on Aug. 8, 2024.
Boeing has faced significant challenges, from a series of aircraft malfunctions and management missteps to a strike by more than 33,000 machinists last year. Ortberg acknowledged that, as CFO, West played a major role in guiding the company’s recovery and positioning it for the future—particularly in raising capital.
“These past few years have been some of the most consequential in Boeing’s history,” Ortberg said in a statement. “Brian successfully guided us through last year’s historic capital raise and ensured our team always had the resources to continue the critical work to strengthen safety and quality across our operations.”
Nicolas Owens, an equity analyst at Morningstar, offered a similar assessment. “I’d say Brian West achieved quite a lot, somewhat in crisis mode over the last few years,” Owens told me. That includes significant financing efforts and managing Boeing’s creditworthiness, he said.
Boeing’s first-quarter earnings, reported in April, showed signs of recovery progress, according to Ortberg. The company reported an adjusted loss of 49 cents per share on revenue of $19.5 billion, outperforming analyst expectations from Zacks Investment Research, which had projected a loss of $1.54 per share on $19.29 billion in revenue. Boeing also reduced its cash burn to about $2.29 billion, down from nearly $4 billion in the same period last year. The company has not yet officially announced the date for its Q2 earnings report.
When Malave takes on the CFO role, he will lead Boeing’s finance organization, as well as strategy, business planning, and global real estate. He’ll need to draw on his experience at Lockheed Martin, his senior finance roles at L3Harris Technologies, and more than 20 years at United Technologies Corporation.
What does Owens think Malave’s top priorities should be? “Malave will want to make sure the internal accounting and risk assessment for long-term programs—like the defense programs that caused many negative charges—are under control and hopefully don’t provide any unpleasant surprises,” he said.
Malave will also need to closely manage Boeing’s liquidity, as the company still needs to close the Spirit AeroSystems deal and is building inventory of 777X aircraft while ramping up production of 737s, Owens added.
That’s why the strategic partnership between Malave and Ortberg is critical.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Andrea Courtois was appointed SVP and CFO of Kirkland's, Inc., a specialty retailer of home décor and furnishings, effective July 21. Courtois will succeed Mike Madden, who plans to pursue other opportunities but will remain in an advisory position until Aug. 15. Courtois brings over 20 years of financial expertise. She most recently served as VP of financial planning and analysis at Francesca’s, following tenures in financial leadership roles at La Senza, Lane Bryant, and Lands’ End.
Brad Dahms was named CFO of Jade Biosciences, Inc. (Nasdaq: JBIO), a biotechnology company. Dahms was most recently CFO and chief business officer of IDRx, a clinical-stage oncology company. Before that, he served as CFO of Theseus Pharmaceuticals, where he guided the company’s initial public offering and sale to Concentra Biosciences. He began his career in health care investment banking, holding roles at Cantor Fitzgerald, RBC Capital Markets, and J.P. Morgan.
Big Deal
Nonfinancial U.S. companies rated by S&P Global Ratings trimmed their operating expenses by more than $150 billion in the first quarter, according to an analysis by S&P Global Market Intelligence.
Total operating expenses for these companies fell to $3.7 trillion in the first quarter, down from $3.8 trillion in the fourth quarter of 2024. Investment-grade companies—those rated BBB- or higher by S&P—accounted for the majority of the reduction, with a combined decrease of $137.9 billion in operating costs. Non-investment-grade companies, meanwhile, reduced their operating expenses by $13.74 billion during the quarter, according to the findings.
Going deeper
The largest cable companies in the U.S. are grappling with the rise of streaming services. New research by Pew finds that 83% of U.S. adults use streaming platforms, while only 36% subscribe to cable or satellite TV.
About 90% of adults under 50 watch programming on streaming services, but majorities of older adults do as well—for ages 50–64, it’s 83%. Adults with higher incomes are most likely to watch streaming services; however, about three-quarters or more of those with middle or lower incomes do the same.
According to Pew, the rise of streaming has also prompted conversations about “cord-cutting” and the future of cable.
Overheard
“I always eat lunch with one of my team members in the Salomon canteen for an hour to talk and connect. It’s a good slowdown in the day and gives me some quality personal time with them.”
—Scott Mellin, 59, the global chief brand officer of Salomon—the 78-year-old French sports brand—told Fortune in an interview.
