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.

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
Nadal leads French Open final by 2 sets
Wawrinka, who triumphed in Geneva in the buildup to the tournament, had also won a career-high 11 successive matches on clay. The weather is just the way Rafael Nadal likes it as he prepares to face Stan Wawrinka in the French Open final.

18 June 2017
LeBron James posts bizarre and puzzling Instagram video
One year after the most devastating collapse in NBA Finals history, the Golden State Warriors are back on top as NBA champions. He shot a scorching 55.6 percent from the field, 47.4 percent from the 3-point line and 92.7 percent from the free-throw line.

18 June 2017
I am sure it will be a well-contested final: Kohli
Recently, the BCCI opposed the tournament and was outvoted 9-1in the ICC. "This is a part of being an Indian cricketer". "But things can change, and this is the time for us to change the tag that we don't perform well at ICC events".

18 June 2017
New York Times sues Federal Bureau of Investigation to get notes of Comey-Trump talks
ABC said Rosenstein told Associate Attorney General Rachel Brand she would have authority over the probe if he were to step aside. But the people briefed on the President's thinking said Trump also knows that firing Rosenstein would be politically risky .

18 June 2017
Jazz Pharmaceuticals PLC (JAZZ) Raised to "Hold" at BidaskClub
BidaskClub upgraded shares of Jazz Pharmaceuticals PLC from a "sell" rating to a "hold" rating in a report on Saturday, June 10th. Another trade for 884 shares valued at $116,666 was sold by Treacy Paul . 132 funds opened positions while 525 raised stakes.

18 June 2017
Portugal vs. Mexico in Confederations Cup
There's huge depth in the German squad, and the only real question mark is whether they need, and have, a regular source of goals. Most hardcore soccer fans know who he is, but if you don't, he is the 21-year-old striker for Bundesliga surprise RB Leipzig.

18 June 2017
Mistrial declared in Bill Cosby sexual assault case
The defense tried to block the deposition from trial , but since there was no written agreement in 2005 with then D.A. Bruce Castor not to charge Cosby, he agreed to the deposition. " Andrea Constand is a positive person", he said.

18 June 2017
London fire: 58 presumed dead, say police
Londoners and others have also donated huge amounts of food, water and clothing, and shelter, to survivors. Grief over a high-rise tower blaze that killed dozens of p.

18 June 2017
British PM Theresa May To Meet Fire Survivors In Downing Street Residence
Six bodies have been recovered from the gutted 24-storey tower, while 11 have been located inside, but can not yet be removed. Some Grenfell residents had warned months ago that fire safety issues at the tower left it at risk of a "catastrophic" event.