GE's Immelt to retire,
John Flannery to take over as CEO
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[June 12, 2017]
Electric Co said on Monday CEO Jeff Immelt would step down, capping a
16-year term that included steering the conglomerate through the
financial crisis and divesting its struggling lending business.
The company said John Flannery, the head of GE Healthcare, would replace
Immelt as CEO, effective Aug. 1. Immelt, 61, will remain chairman
through his retirement on Dec. 31, following which Flannery will take
over as chairman.
The company's shares rose 3.6 percent in premarket trading as Flannery's
appointment to the top job ends a six-year long succession planning
Immelt, who took over from Jack Welch in 2001, has been credited with
guiding the company through the financial crisis, which nearly toppled
the maker of jet engines, wind turbines and locomotives.
Immelt also oversaw $260 billion of asset sales for GE Capital since
2015, and shifted the conglomerate's focus from finance to
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
Immelt had also been betting on developing digital technologies to
create products such as sensors and software that would transform the
company's factories, generate new revenue and boost profits.
However, since Immelt became CEO in 2001, GE's shares have fallen 29
percent, while the S&P 500 index more than doubled. That
underperformance had some pressing for more urgency from Immelt.
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General Electric Chairman and CEO Jeffrey Immelt (C), Senior Vice
President for Corporate Business Development John Flannery and Clara
Gaymard (L), the head of GE France, leave after a meeting with
French President to discuss the future of French engineering group
Alstom at the Elysee Palace in Paris, May 28, 2014.
REUTERS/Christian Hartmann (FRANCE - Tags: BUSINESS ENERGY POLITICS)
Peltz's Trian Fund Management, which has a less than 1 percent stake in the
company, criticized GE's performance and pressed for asset sales and cost
Flannery, 55, who is currently president and CEO of GE Healthcare, joined GE
Capital about three decades ago. He has led GE's equity business in Latin
America and the overall GE Capital business for Argentina and Chile.
Flannery led the turnaround of the healthcare business, increasing organic
revenue by 5 percent and margins by 100 basis points in 2016, GE said in a
The company said Kieran Murphy, president and CEO of GE Healthcare Life
Sciences, will replace Flannery.
(Reporting by Arunima Banerjee in Bengaluru; Editing by Shounak Dasgupta and
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