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The scathing report alleged that the FAA retaliated against whistleblowers, and said Boeing officials improperly influenced the outcome of tests of the aircraft's faulty flight control system.
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Boeing statement: "The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company." More than 300 people have died in Boeing 737 Max plane crashes.
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With all 737 Max jets grounded, the board voted to strip CEO Dennis Muilenburg of his dual role. Two of the planes crashed, killing 346 people, when an automated flight system malfunctioned.
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The announcement Wednesday afternoon follows decisions by many other countries to ground the planes in the wake of Sunday's deadly crash of an Ethiopian Airlines flight.