GE Healthcare's Flannery named CEO of General Electric; Immelt to retire

GE Healthcare's Flannery named CEO of General Electric; Immelt to retire
GE Healthcare's Flannery named CEO of General Electric; Immelt to retire
Author

13 June, 2017

General Electric Chairman and CEO Immelt and staff leave after a meeting with French President at the Elysee Palace in ParisThomson ReutersGE stock is up 4.7% on Monday following the news CEO Jeff Immelt is retiring.

USA technology and engineering conglomerate GE today (June 12) announced John Flannery, the current president and CEO of its healthcare unit, as the group's new CEO effective August 1 and chairman and CEO effective January 1, 2018. While GE ranks among the world's great industrial powerhouses, its stock price has languished and the company has been under particular pressure since Trian Fund Management, run by the billionaire investor Nelson Peltz, took a big stake in it almost two years ago.

Jeff Immelt took charge of the massive industrial company shortly after the 9/11 terrorist attacks and steered the business through the upheavals of the global recession. The new boss was seen as a big thinker who could guide GE into the digital age and do so with a lighter touch than his cutthroat predecessor.

Davis also told CNBC he expected Flannery would break up many of GE's businesses, suggesting a spinoff of GE Healthcare might already be in the works.

Yet investors were unimpressed. Immelt and GE have been under pressure from an activist investment fund to cut costs and increase profits to boost the stock price. "GE needed a new messenger".

Joyce O'Rourke, Flannery's junior year homeroom teacher, said Flannery was your "typical, fun-loving, all-around good kid".

Flannery told Reuters a year ago he aimed to "double down on life sciences", given this business's large and high-margin opportunities.

"We can weather the cycle in the short term and we will be very well positioned to lead the industry going forward", said Immelt at the time. Immelt will step down from the chairman position on December 31, and Flannery will take it over then, as well.

Jeremy Corbyn enjoys kickabout as politics takes a backseat
May has confirmed five of her most senior ministers will remain in their pre-election roles. DUP leader Arlene Foster said "we have made good progress but the discussions continue".

In pre-market activity on the NYSE, GE shares were gaining 2.7 percent to $28.69.

GE's stock has dropped 3.7 percent in the previous year while the S&P 500 has increased 15.9 percent. Come Aug. 1, John Flannery, current president and CEO of GE Healthcare, will take the helm. He joined GE in 1987.

Mr Immelt said: "John is the right person to lead GE today".

"It felt like his agenda [at GE] is not quite complete", Greeley said, pointing out that Immelt is only 61.

Mr Immelt has become one of the world's best-known CEOs, yet never won the accolades that Wall Street bestowed on his predecessor.

Under Immelt's leadership, GE shares have fallen 26.4% from $39.66. He also built up the oil and gas division just before crude prices plummeted. He later moved to Argentina where he led GE's equity business in Latin America and the overall GE Capital business for Argentina and Chile. That led to an unusual disclosure in March in which GE said it had, in conjunction with Trian, pledged to lower annual spending by $2 billion in the next two years and tie executive bonuses to the effort. Trian didn't immediately respond to a request for comment. Trian may have been a factor, Dray said.

John Flannery's "star had clearly risen in the past six months".

The new CEO beat out colleagues such as Steve Bolze, the CEO of GE Power, and Jeff Bornstein, GE's chief financial officer.


More news


  • Slight Chance Of Showers Later, But Sunny & Warm Until Then

    Slight Chance Of Showers Later, But Sunny & Warm Until Then

    Early Friday morning there will be a chance for scattered showers and possibly a thunderstorm. West southwest wind 5 to 10 miles per hour becoming light south after midnight.
    Microsoft showcases Windows Mixed Reality headsets at Computex 2017

    Microsoft showcases Windows Mixed Reality headsets at Computex 2017

    After that during various events we have alreday seen the Windows Mixed Reality Headsets from partners like Acer , HP and Lenovo . Acer and HP will start shipping their first developer kits this August for $299 and $329 respectively.

    Van mounts curb, hits people on London Bridge

    At least 20 people have been taken to six hospitals following terror attacks at London Bridge and Borough Market in London . She said it was a fast-moving investigation and her thoughts were with "those who are caught up in these awful events".
  • Authorized Strike Obliterates Base In Somalia Used To Train Terrorists

    Authorized Strike Obliterates Base In Somalia Used To Train Terrorists

    A USA official stressed in March that the US military will not be able to make unilateral decisions for airstrikes. Somalia's president said the country's army was in "hot pursuit" of the fighters after the attack.

    Israel 'advances' plans for more settlement homes in West Bank

    Palestinian president Mahmud Abbas's spokesman called Mr Netanyahu's comment a "challenge" to Mr Trump and the global community. June 5, 1967 was the beginning of the Six-Day War in the Middle East , which ended with Israel's army capturing the West Bank.

    'Revenge' not Mladenovic's plan for Bacsinszky rematch

    A year after showing so much resolve while winning the French Open , Muguruza fell apart down the stretch. No. 20 Pablo Carreno Busta, and Djokovic vs.
  • Dennis Rodman heads back to North Korea

    Dennis Rodman heads back to North Korea

    Former NBA basketball player Dennis Rodman arrives at Beijing Capital International Airport in Beijing, Tuesday, June 13, 2017. During the 2014 visit he led a team of retired American players in a basketball game to celebrate Kim Jong Un's birthday.
    Trump commits to NATO's Article 5

    Trump commits to NATO's Article 5

    He also said Trump wanted him to back off on the FBI investigation of his former national security adviser, Michael Flynn . On Thursday, Democrats on the House Armed Services Committee had called on Trump to declare his support for Article Five.
    I surprised myself! - Ferrari's Vettel revels in Monaco Grand Prix glory

    I surprised myself! - Ferrari's Vettel revels in Monaco Grand Prix glory

    But the Briton insists he has no intentions on seeking the number one status at Mercedes for the remaining 14 races of the season. But the triple world champion admitted he can ill-afford another off-colour weekend if he is to halt Vettel's charge.
  • Siri, speakers and software: Highlights from the Apple show

    The smartness around music could give the HomePod a significant advantage over the Amazon Echo and Google Home smart speakers . WWDC is Apple's annual pitch to software engineers to continue building programs for the iPhone, iPad , Mac and Apple Watch.
    Police Find Body In Thames; Likely 8th Victim

    Police Find Body In Thames; Likely 8th Victim

    The second was Australian nurse, Kirsty Boden, who was killed as she tried to help the wounded on London Bridge. Family and friends of the couple have also launched an online appeal for information about his whereabouts.

    Nunes remains powerful force in House Russia probe

    Rice, Power and Brennan are believed to have knowledge of recent intelligence leaks to media outlets as well as unmasking American citizens.