Boeing CFO Givan Retiring Unexpectedly -- Accounting-Methods Dispute Reportedly Forces Departure

Boyd Givan, the chief financial officer who has handled Boeing's accounting during its ongoing financial strains, has retired suddenly at the urging of the company's top officers, according to people familiar with the situation.

The exit by Givan, 62, who has held the post of Boeing finance chief and senior vice president since 1990, stems in part from disagreements with other executives over the conservative accounting methods used by Givan, say people close to the matter. For example, some officials believe he was too stringent in assessing how Boeing would accumulate charges for problems incurred in the course of its commercial-airplane order boom.

Among the issues were Givan's guidance in accounting for problems on the production line for new models of the 737. Also at issue have been the rules that govern how much corporate-accounting information can be shared with officials in the company's divisions. Givan had objected to the wider dissemination of some information.

Givan, a 32-year company veteran, will leave Sept. 1. The executive's departure makes him the first clear casualty of commercial-airplane production problems that caused the company last year to record its first annual loss in 50 years.

Givan declined interview requests, as was his practice throughout his corporate service, which included a stint as vice president of finance.

Boeing Chairman Phil Condit and President Harry Stonecipher are said to have been actively involved in encouraging Givan to retire. Condit said in a statement that Givan has had "a long-standing desire" to retire after the past year's integration of operations acquired from Rockwell International and McDonnell Douglas during 1996 and 1997.

As Boeing's chief financial officer, Givan, along wih Condit, had the unwelcome responsibility of carrying grim financial reports to the company's board for much of the past year. While Boeing executives hope they are putting the worst of their problems behind them, it may be some time before directors hear the upbeat reports from company managers that had been anticipated when the company entered the current production boom two years ago.

Wall Street analysts have complained recently about the company's conservative accounting.

The intensely private Givan has been described by some Wall Street analysts as a manager "who would do anything to avoid risk." But the company has increasingly elected to tackle the risks of big acquisitions and challenging airplane-production targets.

The timing of Givan's retirement was not typical. Many Boeing executives retire at age 65, and retirements often are announced at the end of the year.

News of the resignation "was sudden and comes as somewhat a surprise given the difficulties Boeing faces in the months ahead," said analyst Jack Modzelewski of PaineWebber in New York. "They have a lot of accounting issues coming up."

Many of Givan's peers at Boeing had been named to their senior corporate posts by former Chairman Frank Shrontz, and many of them have since retired.

Condit said a search for Givan's successor will be conducted among both internal and outside candidates. He also noted that Givan has provided leadership in strategic areas that contributed to Boeing's longer-term growth and strength.

Before joining Boeing, Givan worked at Arthur Andersen, a national accounting firm, and the former Martin Marietta, an aerospace company.

Jeff Cole's phone message number is 206-464-3343. His e-mail address is: jcole@seattletimes.com

Polly Lane's phone message number is 206-464-2149. Her e-mail address is: plane@seattletimes.com