We expect to see additional focus on meeting near-term operational targets amid this leadership transition. He has also ran GE's India business, its equity business in Latin America and the GE Capital business for Argentina and Chile. "I think the timing is ideal for the new CEO coming in to continue these investments and increase the value of GE's business".
"I'd just break up and sell what I can sell in the strength that's not going to have sustainable earnings", he said. Just like Goldman Sachs and Bank of America, it took a lot of time to stabilize the goldmine and restore the confidence of tired customers and investors. Flannery will become CEO on August 1., and will add the title of chairman on January 1, the Boston-based company said in a statement Monday.
During his tenure, GE completed $260 billion of asset sales for GE Capital since 2015, acquired global energy leader Alstom, announced the combination of GE Oil & Gas with Baker Hughes, divested legacy businesses like GE Appliances, NBC Universal and Plastics, and perhaps most notably for Fairfield County residents, oversaw the relocation of its headquarters a year ago from Fairfield to Boston. Meanwhile, the giant corporation made acquisitions in areas like energy, life sciences, software, avionics, and 3D printing. "It's good for the company to have change", he said. He will remain on as chairman of its board through the end of 2017.
Since taking over as CEO of GE, the stock has actually lost 30 percent of its value, which makes it the worst Dow component, CNBC's Jim Cramer noted during Monday's "Squawk on the Street" segment.
The maker of jet engines, power plants, medical scanners and railroad locomotives on Monday named veteran insider John Flannery as its next chief executive. "The board has encouraged me to come in and look at it afresh".
Yet investors were unimpressed.
Video expected at hearing in Penn State pledge's death case
He's representing the parents of the 19-year-old Piazza, who died after a fall February 2 at the house during a night of drinking. He also was seen falling and hitting his head on the stone floor, and grabbing his head and midsection in apparent agony.
There were great expectations when Immelt replaced the legendary Jack Welch as CEO back in 2001. Even with the gain, the shares have dropped 8.4 per cent this year, compared with an 8.5 per cent increase for the S&P 500 Index.
GE shares had been down almost 13 percent in 2017, but Monday they rose 3.6 percent to close at $28.94. Flannery said he got a phone call Friday offering him the CEO job. That includes the financial crisis and its aftermath, when GE's finance arm was so entwined in the mortgage crisis that it posed an existential threat to the company.
Flannery has an "excellent" reputation inside GE despite not being known well by shareholders, Davis said.
Trian has historically been loath to walk away from investments, and now has no plans to do so in the case of GE, according to a person familiar with the matter. "That's clearly a strong signal to the market where they think an important part of their future lies". In an email Monday, Trian said it had no comment on the leadership change.
Immelt's 16-year tenure began shortly before the September 11, 2001 attacks on the United States and was also roiled by the 2008 financial crisis.
Comments