Is American Airlines planning for life after CEO Doug Parker? Search firm details CEO transition plan.
Changes in key leadership roles are coming at American Airlines.
American Airlines may be planning for a future after CEO Doug Parker as it looks for a new human resources leader to lead hiring “while actively engaging with a new CEO who has not yet been named.”
Executive search firm Hunter Scanlon released the posting Friday for a “chief human resources officer” that would likely eventually succeed American Airlines Chief People Officer Elise Eberwein. But that person would also “report to the new CEO, who will be a key part of this interviewing and selection process.”
“The airline is in the midst of a multi-year strategic succession planning process that is designed to prepare an internal executive for the chief executive officer role,” the posting from Hunter Scanlon said.
“As that transition occurs, there are other key leadership transitions that will soon happen, including Elise’s retirement,” said the search firm. “After these moves take place, the CHRO will eventually report to the new CEO, who will be a key part of this interviewing and selection process.”
That ”internal executive” is presumably American Airlines President Robert Isom, who oversees many of the everyday operations at American and is the No. 2 in the company.
American is Philadelphia’s largest carrier.
Parker, 59, is still young in CEO years and has been running the airline since 2013, when he helped orchestrate the merger between American and US Airways, where he was CEO. In fact, he was appointed CEO of America West Airlines just after the 2001 terrorist attacks, giving him almost two decades as the leader of a major airline.
Isom has taken an increased role at American since he was named the company’s president in 2016. Most letters to employees are co-signed by Parker and Isom and he does much of the face-to-face meetings with worker groups.
Isom has been presumed to be the eventual CEO successor since the company parted ways with Scott Kirby in 2016. Kirby, a longtime business partner of Parker-like Isom, left for Chicago-based United Airlines and took over as CEO last year.
American Airlines’ Eberwein confirmed many of the details of the report on social media but pushed back on some of the speculations as “inaccurate.”
“It’s true Robert is the ideal internal candidate. It’s true Doug will celebrate 20 years this year as CEO. Someday, not today, next month, or year, Doug will retire. Robert will likely become CEO if all goes as planned. That was made pretty obvious several years ago,” she wrote in a post on Twitter confirmed by American Airlines.
The posting said the new chief human resources officer will report to Eberwein until she decides to retire herself. That person would then reportedly report to the new CEO.
It’s common for airlines to have CEO succession plans for eventual retirements, sudden corporate upheavals or unexpected deaths. But it is rare for a company’s plans to be outed in this way. Eberwein wrote that many of the details were released to make the job clear to potential candidates.
“None of this is happening immediately or even anytime soon,” Eberwein wrote. “In hindsight, it’s clear we should have just left the reporting structure to me and those who want to report to the president or CEO would just opt out.”
A lot could happen for American in the next few years. Parker hasn’t publicly disclosed his plans. Isom may not be willing to wait around for Parker to leave or may retire himself. In the meantime, a new candidate could emerge as a future leader.