3M chief new CEO of Boeing

Aerospace giant The Boeing Co. turned Thursday to 3M CEO W. James McNerney Jr. in a bid to restore stability and high ethical standards to the company’s top job.

McNerney, who takes over immediately at Boeing, becomes the third CEO in 18 months.

In nearly five years at 3M, McNerney led the diversified manufacturer to strong profits and a soaring stock price.

Since 2003, Chicago-based Boeing has dealt with high-level scandals: A Pentagon procurement scandal forced the departure of former CEO Phil Condit, followed by the ouster of Condit’s successor, Harry Stonecipher, over an extramarital affair with a Boeing executive.

In McNerney, 55, Boeing appears to have hired an experienced top executive who knows the jetmaking business. Prior to working at 3M, McNerney ran General Electric’s jet-engine manufacturing unit under CEO Jack Welch.

He’s also been on Boeing’s board for about three years. As an undergraduate, he played on Yale’s baseball team with President Bush.

"He doesn’t have to learn who’s on first," says Howard Rubel, an analyst at Jeffries & Co. "He already knows the players."

McNerney’s job switch sent Boeing share prices up and 3M prices down.

Boeing stock soared 7 percent, closing at $ 66 after reaching a 52-week high of $ 66.85 during the day.

3M shares closed at $ 72.30, down nearly 5 percent. During the day, the stock hit a 52-week low at $ 72.25.