Boeing announced that its head of government affairs and top lobbyist, Ziad "Z" Ojakli, would be leaving the company effective immediately. This development was communicated to employees through an email from Boeing's CEO, Kelly Ortberg, who has been leading the company since early August. Ojakli, who took over as head of Boeing's government operations in September 2021, had previously served in similar roles at Ford Motor Company and SoftBank. His departure marks the fourth exit from Boeing's executive council since Ortberg assumed his position. The reasons for Ojakli's exit were not detailed in Ortberg's email, but it comes at a tumultuous time for Boeing, with the company navigating through a series of operational and strategic challenges.
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In the interim, Bill McSherry, who oversees Boeing's state and local government operations, will take on Ojakli's responsibilities until a permanent replacement is found. This transition period is crucial as Boeing continues to engage with government officials and policymakers, particularly in light of regulatory scrutiny following safety issues and production delays with its 737 MAX aircraft. The announcement of Ojakli's departure follows a difficult year for Boeing, highlighted by a strike by its machinists, which halted production, and ongoing investigations by the Department of Justice and the Federal Aviation Administration into various operational and compliance issues. Ojakli's role was pivotal in managing these relationships, ensuring Boeing's interests were represented during legislative and regulatory discussions.
Ortberg has been vocal about the need for a cultural shift within Boeing, emphasizing a focus on safety, quality, and rebuilding trust with stakeholders. His leadership has seen significant changes, including the strategic divestiture of non-core assets, cost-cutting measures, and a commitment to improving the company's safety management system. The departure of a high-profile lobbyist like Ojakli might signal further changes in Boeing's approach to government relations, possibly aiming for a more streamlined or different strategy in handling regulatory and political engagements.
Boeing has been under pressure to demonstrate its commitment to safety and operational excellence, especially after a mid-air emergency involving a 737 MAX 9 aircraft led to a cap on production rates. With Ojakli's exit, Boeing might be looking to reshape its advocacy efforts to better align with its new strategic direction under Ortberg, focusing on transparency, accountability, and direct communication with regulatory bodies. While part of executive turnover, this move adds another layer of complexity to Boeing's efforts to stabilize its operations and improve its public image. The company has yet to comment further on the specifics of Ojakli's departure or the strategic implications for its government affairs division.