Economy

General Electric CEO Jeff Immelt is stepping down

General Electric CEO Jeff Immelt is stepping down”

After serving 17 years as CEO, Immelt will be replaced by John Flannery, the current president and CEO of GE Healthcare.

Immelt has served as CEO for 16 years and will be replaced by John Flannery, now the president and CEO of GE Healthcare. The shares dropped 12 percent this year through Friday, compared with an 8.6 percent gain for the Standard & Poor's 500 Index.

He said that while "no one's happy with the stock price now", the health care sector in particular offered "so much long-term growth", adding that GE was "just scratching the surface of what we can do in that business". Bornstein was promoted to vice chairman.

GE has struggled somewhat in the stock market in recent times, with its stock falling 8% year-to-date, although its share price was boosted nearly 4% in early trading on Wall Street on Monday following news of the change. Immelt insisted Monday that the activist shareholder had nothing to do with the timing of the decision.

MICHAEL USEEM: He, over the last 16 years, has really transformed the company from what it was, spun off a number of operations, including NBC television, the home appliances division, cut back on the involvement in banking. Trian declined comment on the CEO change on Monday.

General Electric is Ohio's largest manufacturing employer of more than 15,000 people, according to state records, when including the GE Lighting division in the Cleveland area, GE Capital, and GE Aviation, which is headquartered in Evendale.

More news: Today Americas Car Mart Incorporated (NASDAQ:CRMT) Reported Increase in Shorted Shares

But, despite the potential for changes, the early prediction among some local business leaders is that the 55-year-old Flannery will continue down the path Immelt has put GE on, broadly speaking.

Despite a corporate overhaul that many lauded, Immelt has not had the same success as Welch did with the stock. From acquisitions to negotiations, John Flannery is always on target when it comes to business, and as the new CEO of GE, they couldn't be in more capable hands. GE also said it would seek to link bonuses for senior managers to achieving those cost-cutting and profitability goals.

"Digital is going to be a core aspect of the company for the next generation", Flannery said.

It was at the Electrical Products Group Conference in May that Immelt's differences with Trian became obvious. It ran into problems defining its role, given the panoramic suite of products it offered, and launched "strategic organizational changes" previous year. At the end of 2015, there were already four internal candidates after the board rejected outside possibilities.

It's worth noting that Immelt also ran GE Healthcare before he was tapped for GE's top post. Investors have been unhappy with the way Immelt struggled to "connected with investors" over the past decade. The timetable for succession, right down to the June 2017 announcement, was in place before Trian owned a single share, the person said.



Like this

loading...
loading...

Latest


18 June 2017
London police say 58 people assumed dead in tower block blaze
She also pledged 5 million pounds ($6.39 million) of support, housing guarantees and help with access to bank accounts and cash. A total of 74 people were being treated at six London hospitals with 18 in critical care in the day that followed the blaze.

18 June 2017
Trump lashes out over probe
And it was Rosenstein who appointed Robert Mueller as the special counsel to lead that investigation after Comey was sacked . But because none of those positions have been filled by Senate-confirmed people, the job would fall to the U.S.

18 June 2017
Brewster's first Relay for Life raises over $75000 for cancer research
A survivor/caregiver reception will be held after the lap, and the Luminaria Ceremony will begin at 9:30 p.m. All proceeds will go to Amanda's Army Relay for Life team, which benefits the American Cancer Society.

18 June 2017
U.S. calls on Arab states to ease Qatar blockade as crisis deepens
US Secretary of State Rex Tillerson said the move was rooted in longstanding differences and urged the parties to resolve them. The United Arab Emirates welcomed "President Trump's leadership in challenging Qatar's troubling support for extremism".

18 June 2017
Shot US congressman Scalise improving
Hodgkinson's apparent Facebook page included strong criticism of Republicans and the Trump administration. Hodgkinson also contacted the office of Rep.

18 June 2017
Spectators react to mistrial at Bill Cosby trial
The Associated Press does not typically identify people who say they are victims of sexual assault unless they grant permission. Judge Steven O'Neill said on Saturday morning that the note from jury "indicates that we the jury are deadlocked on all counts".

18 June 2017
Ariana Grande leads star-studded One Love Manchester concert
Just before the concert, she re-released her song " One Last Time " as a charity single benefitting the Manchester victims. The track was recorded during Grande's massive charity gig for the victims of the Manchester attacks this Sunday.

18 June 2017
Feinstein Wants Comey To Testify Again - And Is Threatening To Subpoena Him
The news caused Mr Trump to lash out about the investigation - and seemingly confirm its existence . The Russia issue has cast a shadow over Trump's five months in office.

18 June 2017
$1.92 EPS Expected for Capital One Financial Corp. (COF)
The expected COF's profit could reach $941.94M giving the stock 10.59 P/E in the case that $1.92 earnings per share is reported. Quadrant Capital Group LLC increased its stake in shares of Capital One Financial Corporation by 2.5% in the first quarter.

18 June 2017
Was Rosenstein The One Who Launched Obstruction Of Justice Inquiry Into Trump?
Comey testified before the Senate Intelligence Committee last week and described writing the memos as well as their contents. President Trump expressed his thoughts about the shift on Twitter .