Immelt, 61, succeeded legendary CEO Jack Welch, who had led the company for 20 years and vastly increased its size and scope. He also built up the oil and gas division just before crude prices plummeted. Immelt spent a good portion of his time at GE downsizing the company, casting off divisions such as the NBC television network and its appliances division, as well as numerous assets of the profitable GE Capital unit.
The 55-year-old will assume chairman duties following Immelt's retirement on December 31.
GE shares rose 4.2 per cent to $29.11 before regular trading in NY.
All things considered, Cramer has a plan for investors when it comes to the stock of GE. Immelt took over on September 7, 2001, four days before the terrorist attacks.
The stock was worth a bit less than $40 on Immelt's first day in 2001, with the U.S.in the middle of a recession.
Analyst Robert McCarthy at Stifel Nicolaus wrote in a note to clients that the timing of the change in leadership was "unsurprising since the serial underperformance of the stock".
GE, which makes everything from aircraft engines to medical equipment, said the changes are part of a succession plan that has been in the works for several years. At the same time, the S&P 500 index more than doubled, Reuters reported.
GE said that during Immelt's tenure, the company almost doubled its industrial profit, and operating earnings per share were rose about 50%.
Judge clouts 22nd homer, propels Yankees past Angels 5-3
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Immelt spent the second half of his time as CEO returning the company to its less-risky industrial roots. He has also withdrawn GE nearly entirely from financial services, which once accounted for about half of the company's sales.
Immelt has been at the helm of GE since 2001, overseeing a transformation that included selling numerous company's businesses.
"My guess is they've probably got the portfolio of businesses close to what they want it to be", Greeley said.
During his tenure, GE bought French peer Alstom's power business and announced a deal to acquire oil and gas company Baker Hughes, while jettisoning assets in media, plastics and even its famed appliances division. If that's the case, it could bode well for the business community in GE's new home base of Boston, as well as for startups and other potential partners in sectors like industrial software, healthcare technology, energy, and 3D printing.
Flannery began his career at GE Capital in 1987, where he focused on evaluating risk for leveraged buyouts.
GE said Kieran Murphy, president and CEO of GE Healthcare Life Sciences, will replace Flannery.
He also noted the potential to grow GE's already-large healthcare business, which Flannery led for the past three years in Chicago.
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