Boeing (BA) shares are up by over 1% ahead of Monday's market close after announcing a leadership shakeup this morning. Boeing CEO Dave Calhoun will resign from his position by the year's end while board chair Larry Kellner will not seek reelection at the upcoming annual shareholder meeting. This leadership overhaul comes in the wake of numerous safety concerns around Boeing's manufacturing of its 737 Max jets.

Yahoo Finance Senior Reporter Pras Subramanian breaks down the details.

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Editor's note: This article was written by Angel Smith and updated by Luke Carberry Mogan.

Video Transcript

- Let's get to our top story of the day. Boeing shares moving to the upside, up just about 3 and 1/2 percent in pre-market trading after announcing a major leadership shakeup. The planemaker CEO Dave Calhoun will be stepping down from the helm at the end of the year. Boeing's chairman of the board Larry Kellner also announced that his decision not to stand for re-election at the company's annual meeting in May.

Yahoo Finance's Pras Subramanian, who has been following the Boeing story from the beginning joining us now here on set. And perhaps at least by the first look of it, shares moving to the upside. It seems like shareholders are encouraged by this news.

PRAS SUBRAMANIAN: Yeah. I hate to say, but were sort of waiting for this news to happen for some time. And I think there was some writing on the wall that Calhoun couldn't survive the Alaska Airlines Max blowout. It was just the latest-- it was too much of a high profile kind of safety issue that was just a concern over has Boeing actually gotten past its quality control, its safety issues, its production quality issues.

And I think that this move was sort of maybe orchestrated by a potentially bigger shareholders. The board probably lost confidence. The board-- I mean, Larry Kellner, also you mentioned, stepping down there too. He was the board for over a decade. The chair since 2019.

So he's been through it all there. And I think he also was sort of joined with Calhoun as the two biggest guys to come down here. I also want to note that Stan Deal that had a commercial airlines division. He's also stepping down. And Stephanie Pope, who was head I think of Boeing global services will step in for the commercial airlines head position there.

- Yeah, it's interesting I mean the MaxLine has now taken out two CEOs. Previously, Dennis Muilenburg. And now, Dave Calhoun. What do we know about the leadership that they're going to be seeking now for this role and perhaps the type of person that's fit for Boeing and to really turn things around there?

PRAS SUBRAMANIAN: Yeah. You know, Calhoun leaving, he's also an insider there at Boeing. So maybe the thought is to get someone from outside the company, not sure about that. But I think-- the two biggest things that I see from a succession point of view are the person who steps in, do they have the sort of background of turning things around, the ability to have that street cred from an industrial point of view? And then also, are they going to be given the Carte Blanche to do whatever they need to do?

- Which could have major ramifications for the stock.

PRAS SUBRAMANIAN: Yeah.

- And investors as well.

PRAS SUBRAMANIAN: Exactly. Are they going to be able to, not only weather the storm of potential downdrafts of the stock but also the money that needs to be invested to change things at Boeing, maybe reacquire Spirit AeroSystems as what was once said, and try to get that all that under the same sort of garage or under the same roof to make sure that the planes are back to where Boeing used to be. I think that's the main concern there.

- Under the same hangar.

PRAS SUBRAMANIAN: Yeah. There we go. There we go.

- All right. Well, Boeing shares, at least for today, moving to the upside recouping some of the losses that we've seen since the start of the year. Just some long ways to go as we talk about that recovery story. Right, Pras. Thanks so much.