James McNerney
W. James McNerney Jr. | |
|---|---|
| Born | August 22, 1949 Providence, Rhode Island, U.S. |
| Occupation | Business executive |
| Years active | 1975–present |
| Known for | Chairman, president, and CEO of Boeing (2005–2016) |
Walter James "Jim" McNerney Jr. (born August 22, 1949) is a corporate leader who held the roles of president and CEO at the Boeing Company from June 2005 until July 2015. Additionally, he served as chairman from June 2005 through March 1, 2016. During his tenure, McNerney directed significant initiatives such as the creation of the Boeing 737 MAX.
Early life and education
Born in Providence, Rhode Island, McNerney completed his secondary education at New Trier High School in Winnetka, Illinois, graduating in 1967. He obtained a B.A. from Yale University in 1971, where he was affiliated with the Delta Kappa Epsilon fraternity and distinguished himself in baseball and hockey. After brief employment with British United Provident and G.D. Searle, LLC, he earned his MBA from Harvard Business School in 1975.
Career
McNerney launched his professional journey at Procter & Gamble in 1975, specializing in brand management. He subsequently joined McKinsey & Company as a management consultant from 1978 to 1982.
In 1982, he became part of General Electric, assuming leadership positions such as president and CEO of GE Aircraft Engines and GE Lighting; president of GE Asia-Pacific; president and CEO of GE Electrical Distribution and Control; executive vice president of GE Capital; and president of GE Information Services. McNerney contended alongside Robert Nardelli and Jeff Immelt for the top spot succeeding Jack Welch as chairman and CEO of GE. Following Immelt’s appointment, McNerney departed GE in 2001 to lead 3M as chairman and CEO until 2005. Some former employees at 3M have criticized his tenure for suppressing innovation, with lasting impacts on the company’s creative output.
Presently, McNerney holds the positions of president, chairman, and CEO at the United States Equestrian Team Foundation and was honored with the R. Bruce Duchossois Distinguished Trustee Award in 2024.
Boeing
McNerney assumed the roles of chairman, president, and CEO of Boeing on June 30, 2005. He steered the aerospace corporation with an emphasis on stringent cost management. Notably, as Boeing’s first CEO lacking an aviation background, he opted to modernize the 737 line into the 737 MAX rather than pursuing a new aircraft design. He also relocated Dreamliner production to North Charleston, South Carolina—a move interpreted as an effort to diminish Puget Sound union influence—though this relocation resulted in persistent manufacturing challenges. The National Labor Relations Board lodged a complaint accusing Boeing of retaliating against union workers involved in strikes; this claim was eventually dismissed following a settlement.
During McNerney’s leadership, Boeing expedited development of the 737 MAX and navigated FAA certification processes to avoid mandatory pilot retraining, thereby reducing costs and downtime for customers. However, this approach contributed to two deadly crashes in 2018 and 2019 that led to the MAX being grounded for nearly two years. Investigations revealed that executives prioritizing cost reduction—including McNerney—frequently dismissed engineers’ safety warnings. Gautam Mukunda, a professor at Yale SOM, labeled McNerney "arguably the worst CEO in American history" due to these decisions.
Compensation
W. James McNerney Jr.’s remuneration as Boeing CEO showed notable fluctuations over time. In 2007, his total earnings amounted to $12.9 million, comprising a $1.8 million base salary and a $4.3 million cash bonus. By 2008, his compensation increased to $14.8 million with a $1.9 million salary and a $6.1 million cash bonus included. In 2009, total pay declined slightly to $13.7 million, consisting of a $1.93 million salary, $4.5 million bonus, and stock awards exceeding $6.2 million.
In 2013, his total compensation jumped to $23.2 million featuring a $1.9 million salary; stock awards and options each valued at $3.7 million; plus a $12.8 million incentive bonus. The following year, serving as both chairman and CEO, he received $29 million—composed of a $2 million salary; annual and three-year performance bonuses totaling $14.4 million; stock awards worth $6.3 million; alongside additional benefits.
Positions
Since 2001, McNerney has been a member of Boeing’s board and also holds director positions at Procter & Gamble and IBM. He served as chairman of The Business Council during 2007–2008 and participates on the boards of Northwestern University’s Board of Trustees and the Center for Strategic and International Studies.
Appointed by President Barack Obama, McNerney led the President's Export Council. Later, in December 2016, he became part of then president-elect Donald Trump’s business advisory forum, providing guidance on economic policy and strategy.
Career path
| Period | Organization | Role |
|---|---|---|
| 1975–1978 | Procter & Gamble | Brand Manager |
| 1978–1982 | McKinsey & Company | Senior Project Manager |
| 1982–1988 | GE Mobile Communications | General Manager |
| 1988–1989 | GE Information Services | President |
| 1989–1991 | GE Financial Services and GE Capital | Executive Vice President |
| 1991–1992 | GE Electrical Distribution and Control | President and CEO |
| 1993–1995 | GE Asia-Pacific | President |
| 1995–1997 | GE Lighting | President |
| 1997–2000 | GE Aircraft Engines | President and CEO |
| 2000–2005 | 3M | President and CEO |
| 2005–2015 | The Boeing Company | Chairman, President, and CEO |