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Monday, Dec. 1, 2003

The company's board accepted Condit's resignation after deciding "a new structure for the leadership of the company is needed," according to a statement from Boeing.

"Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement.

The move comes a week after Boeing unexpectedly fired its chief financial officer, Mike Sears, for unethical conduct. It said he negotiated the hiring of an Air Force missile defense expert while she was still working for the Pentagon and was in a position to influence Boeing contracts.

Sears was dismissed along with the former Air Force official, Darleen Druyun. She was hired earlier this year as vice president and deputy general manager of Boeing's Missile Defense Systems unit.

Boeing made no connection between Condit's departure, effective immediately, and the firings in its announcement Monday.

The board named former Hewlett-Packard Co. president and chief executive Lewis E. Platt as non-executive chairman and former Boeing president and chief operating officer Harry C. Stonecipher as president and CEO, effective immediately.

Platt praised Condit's "characteristic dignity and selflessness in recognizing that his resignation was for the good of the company" and said the board "is in unanimous agreement that the company has been pursuing the right transformation strategy and that Boeing is in excellent financial condition."

"We have the right strategy," Stonecipher said. "The task before us is to execute. ... Boeing is a great company with tremendous capabilities to define the future in each of our markets and deliver consistent, profitable growth."

For decades, Boeing was primarily an aircraft maker, earning most of its money from its jetliners. But in the aftermath of the Sept. 11, 2001, terror attacks, Boeing's defense division now brings in more revenue than commercial airplanes. Boeing has expanded its space, communications and other businesses as well.

Rival Airbus expects to eclipse Boeing this year as the world's largest manufacturer of commercial jets.

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