What’s next for General Electric?
Jeffrey Immelt, CEO of General Electric, announced his decision to step down today after a 16 year stint with the company. Immelt will be succeeded by John Flannery, the president and chief executive of GE Healthcare. Flannery will become CEO on August 1st, and take over as chairman on December 31st. Flannery has been with GE for over 30 years and, according to Reuters, focused on leveraged buyouts and corporate restructuring. Immelt is best known for leading the company through the recession, after taking over from Jack Welch in 2001.
Immelt’s resignation is unsurprising given the poor stock performance and pressure from GE’s largest stakeholder Trian Fund Management, which also pushed for cost cuts and asset sales. Immelt’s decision was met by a 3.6% increase in share price (at $28.97). Kieran Murphy, who is the president and CEO of GE Healthcare Life Sciences, was named successor to Flannery at the healthcare division.