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.

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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.

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