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Calhoun’s main task in his final months on the job–he’s stepping down at the end of the year–should be to ensure that as much bad news about the company as possible walks out the door with him. Along the way, he’ll have to weather numerous investigations by regulators, and possibly the acquisition of fuselage maker Spirit AeroSystems, the unit that Boeing demerged in 2005.

That’s a lot, but the task of the incoming CEO is even more daunting. A fundamental concern has been over Boeing’s production processes. It has said it will fix any mistakes it has made. The company was contacted for comment early Tuesday.

It’s not a new problem–Calhoun himself was brought in to clean up the mess from two fatal MAX 737 crashes in 2018 and 2019. Boeing has spent considerably less than rival Airbus on research and development since 2010, and has favored revamping old models rather than all new designs. Some argue that Boeing’s problems go all the way back to the merger with McDonnell Douglas in 1997.

Fixing a problem with the company’s culture, if that’s what it is, won’t be enough. The CEO also has a second job - Boeing has to show people that it’s getting better, which will be an enormous job in itself.

Boeing shareholders have to hope that things can only go up. But they’re not so sure–the stock rose just 1.4% on Monday following the news of the changes.

If Boeing fails to recover fast enough, it could lose more ground to Airbus and open the door to a challenge from a Chinese aircraft builder. The stakes for the new CEO couldn’t be higher.

—Brian Swint

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Boeing Shuffles Boardroom, Leadership as Investigations Swirl

Boeing has turned to a battle-tested board member as it fights to recover from a series of troubling problems with its aircraft. Steve Mollenkopf, Qualcomm ’s former CEO, has been tapped as Boeing ’s new chairman, taking the spot four years after he joined the board as current Chair Larry Kellner departs.

• Boeing CEO Calhoun is also stepping down, although no replacement for him has yet been named. Mollenkopf will lead the search for Boeing’s next CEO. The changes come as airline CEOs were preparing to meet with Boeing’s board at the CEOs’ request, The Wall Street Journal reported.
• Calhoun’s departure as CEO later this year comes amid investigations into the blowout of a door plug on an Alaska Airline flight in January. The Justice Department notified passengers on that flight they could possibly be crime victims. The letter, reviewed by Barron’s, doesn’t mention Boeing.
• The letter said the Federal Bureau of Investigations is investigating. Boeing wouldn’t comment. Mark Lindquist, a lawyer representing passengers, told Barron’s they welcomed the investigation. “We want answers. We want accountability. We want Boeing to make safer planes,” he said.
• Calhoun turns 67 in April. He became Boeing CEO in January 2020, promising a turnaround. He told CNBC on Monday that he hoped Boeing could agree soon to a deal with Spirit AeroSystems , the maker of fuselages, as it seeks to recreate a vertically integrated production model.

What’s Next: Three names come up most often when discussing Calhoun’s possible successors: Larry Culp, the CEO of General Electric , a key Boeing supplier; Bill Brown, the former CEO of defense giant L3Harris Technologies who is set to become CEO of 3M in May; and Patrick Shanahan, CEO of Spirit AeroSystems.

—Liz Moyer and Al Root

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Trump’s Media Firm Begins Trading Today After SPAC Merger

Former President Donald Trump’s media company, the owner of his Truth Social platform, starts trading on the Nasdaq today after completing its merger with a blank check company. The occasion would boost Trump’s fortunes, at least on paper, by nearly $4 billion based on Monday’s closing price for the shell company.

• Trump Media & Technology Group will use the ticker symbol DJT. The stock’s market value is outsize compared with Truth Social’s results. The platform’s advertising revenue for the first nine months of 2023 was $3.4 million, according to a securities filing.
• Trump owns nearly 60% of the media company’s shares, a stake worth about $3.9 billion based on Monday’s trading. He is subject to a six month lockup. Overall, the company’s market value is $6.8 billion after the shares have surged more than 185% this year.
• Although the business doesn’t disclose user data, Truth Social had five million mobile and desktop visits in February, according to traffic analytics site SimilarWeb. That is well below Meta Platforms ’ Facebook and Instagram, Alphabet ’s YouTube, Elon Musk’s X (formerly Twitter), newly publicly traded Reddit , and TikTok.
• But the paper windfall comes as Trump faces pressure to finance a bond for a legal judgment. An appeals court in New York agreed to reduce a $454 million bond in a civil fraud case to $175 million, which Trump has vowed to pay quickly while he appeals.

What’s Next: Trump has several days to post the bond, halting New York Attorney General’s plans to collect by potentially seizing property. Trump could have to pay the $454 million if he loses his appeal. Another $10 million in combined judgments were issued for two of Trump’s sons and a former associate.

—Paul R. La Monica and Janet H. Cho

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Fisker’s Talks with Auto Maker Collapse, Faces Delisting

Electric vehicle start-up Fisker is back to the drawing board after its talks about a potential deal with a large auto maker fell through, renewing questions about its finances and the possibility of it seeking bankruptcy protection. Fisker said alternative moves may include in or out-of-court restructurings.

• Fisker said in a filing it is weighing strategic alternatives, which also include capital-markets transactions, refinancing of its debt, possible asset or business sales, or other strategic transactions. Any action would come with significant uncertainties, it said.
• Because the large auto maker canceled the deal negotiations, Fisker won’t be able to meet a condition of a $150 million financing deal it made with an investor in mid-March. It’s trying to get a waiver of that condition, but it can’t assure that it will get one.
• The Wall Street Journal reported earlier in March that Fisker was working with advisors on a possible bankruptcy filing, after it had warned in February about “substantial doubt” it would be able to stay in business. Fisker has said that it often works with advisors on strategies.
• Another EV start-up, Lucid , said an affiliate of Saudi Arabia’s sovereign wealth fund agreed to buy $1 billion of newly created convertible preferred stock. It plans to use the money for general corporate purposes, including capital spending and working capital.

What’s Next: The New York Stock Exchange has begun the delisting process for Fisker’s stock because it has dropped so low, down to 9 cents a share before being halted on Monday. Trading in the stock was suspended immediately. The EV maker has a right to review the exchange’s decision and appeal.

—Janet H. Cho

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California’s Fast-Food Workers Face Minimum Wage Hike but Also Cuts

Fast food workers in California will soon see their minimum hourly pay rise to $20, but that means franchisees will be cutting labor costs by laying off workers, freezing hiring, and shifting tasks to automation. Some chains are reducing hours, serving faster-to-prepare menu items, and expanding self-service options.

• The pay increase applies to chains with 60 or more locations and takes effect April 1. Pizza Hut and Round Table Pizza plan to lay off 1,280 delivery drivers. Chipotle Mexican Grill expects to raise prices in the mid- to high-single-digits, and Wingstop by 4% to 5%.
• El Pollo Loco expects to raise menu prices by mid- to high-single-digit this year, and is using in-store ordering kiosks and eliminating one of its two salsa options. Jack in the Box , which expects menu prices to increase by 6% to 8%, is testing fryer robots and automated drink dispensers.
• Supporters say raising wages 25% from the current minimum of $16 an hour will help thousands of workers who are coping with higher rent and other costs in the state. Organized labor groups plan to introduce similar wage increases in other states.
• The nonpartisan Congressional Budget Office found that raising the federal minimum wage to $17 an hour from $7.25 by July 2029 could raise pay for more than 18 million people. But it would also increase employers’ costs, who could raise prices and cut about 700,000 workers.

What’s Next: Some chains see an opportunity to pick up market share since the rising wages hit all their competitors, too. They plan more support for franchisees, including advertising spending, product innovations, and technology updates. McDonald’s CEO Chris Kempczinski said the company is better positioned versus competitors.

—Janet H. Cho and Evie Liu

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Be sure to join this month’s Barron’s Daily virtual stock exchange challenge and show us your stuff.

Each month, we’ll start a new challenge and invite newsletter readers—you!—to build a portfolio using virtual money and compete against the Barron’s and MarketWatch community.

Everyone will start with the same amount and can trade as often or as little as they choose. We’ll track the leaders and at the end of the challenge the winner whose portfolio has the most value will be announced in The Barron’s Daily newsletter.

Are you ready to compete? Join the challenge and pick your stocks here.

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—Newsletter edited by Liz Moyer, Callum Keown, Rupert Steiner