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?