Dive Brief:
- Spirit AeroSystems named Irene Esteves as its new CFO on Wednesday, one day after former CFO Mark Suchinski resigned, according to a June 5 securities filing.
- Esteves, the former CFO of Time Warner Cable and a Spirit AeroSystems board member, took the job effective immediately, the company stated in the news release.
- Suchinksi will stay with Spirit AeroSystems as an advisor to Esteves during a transition period.
Dive Insight:
The executive turnover comes amid a precarious time for Spirit AeroSystems’ finances and future. The company has been under scrutiny for months regarding the quality of parts it supplies to Boeing. The aircraft maker and Airbus are also in talks to split and acquire Spirit AeroSystems’ operations.
Meanwhile, the manufacturer burned nearly $617 million in cash in Q1 as a result of its attempts to address manufacturing quality issues with Boeing, as well as stalled pricing negotiations with Airbus.
Spirit AeroSystems has been working with Boeing to address production issues since the Alaska Airlines’ door plug blowout incident in January. The incident caused a drop in deliveries, delayed payments and backed up fuselage inventory.
Suchinski left his post after more than four years as CFO. Esteves, meanwhile, has been involved with Spirit AeroSystems for nearly a decade, serving as a member of its board of directors since 2015.
Esteves previously held the CFO role at multiple companies. She served as CFO at Time Warner Cable from July 2011 to May 2013, at insurance company XL Group, now known as AXA XL, from May 2010 to June 2011 and at Regions Financial Corp. from 2008 to 2010
“[Esteves] extensive experience and her remarkable instincts and financial acumen will be invaluable as we continue to drive our strategic initiatives and deliver value to our teammates, customers, and shareholders,” Spirit AeroSystems President and CEO Patrick Shanahan said in a statement.
As Spirit AeroSystems’ new EVP and CFO, Esteves will receive a yearly base salary of $700,000 as well as stock with a target value of 330% of her salary. She will also be eligible for a $250,000 retention bonus if she stays with the company through April of next year.
Esteves will receive temporary housing in Wichita, Kansas, where Spirit AeroSystems’ headquarters is located, use of corporate aircraft to travel from her residence to Wichita and an automobile allowance.
Before his resignation, Suchinski’s compensation for 2023 was $2.3 million, which included a $625,000 base salary, $1.6 million in stock and $59,026 in other compensation.
