McBoeing, 787′s insidious impact overwhelm product strategy

McBoeing is alive and well in Seattle.

“McBoeing” is the derisive moniker given the combined Boeing-McDonnell Douglas merger of 1997 in which legacy Boeing personnel say MDC bought Boeing with Boeing’s money. Key positions in Boeing’s C-level suite were assumed by McDonnell Douglas officers despite the weak market position MDC had reached–just 7% of the commercial airplane business and a declining defense side.

In what turned out to be the most notorious placements, MDC’s CEO Harry Stonecipher became Boeing’s COO and widely was perceived to overwhelm a weak Phil Condit, Boeing’s CEO. Mike Sears, later of KC-767-Darleen Drunyan tanker infamy, moved from MDC to become Boeing’s CFO.

John McDonnell and Stonecipher, the largest shareholders in Boeing after the merger, went on the Board of Directors and formed a powerhouse team. They and directors allied with them dominated the Board.