GE's new CEO to review portfolio 'with no constraint'

Jeff Immelt

Jeff Immelt

It's worth noting that Immelt also ran GE Healthcare before he was tapped for GE's top post.

Flannery, 55, who started his career with GE Capital 30 years ago, was the head of the conglomerate's Indian operations from 2009 to 2013.

"He made a lot of transformative calls, and, frankly, courageous calls and, I would say, frequently lonely calls", Flannery said.

Current CFO Jeff Bornstein has been promoted to Vice Chair of GE. At the lending unit, he focused on leveraged buyouts and later led the corporate restructuring group. He also worked on shrinking GE Capital and the disposition of GE Appliances, according to GE.

In his view, Flannery's prior experience leading GE's business development team, which seeks out M&A deals, would make him "readily adept at maximizing value and structuring potential exits" - as Flannery did through the 2015 acquisition of Alstom's power and grid business. His announced departure forces attention on a large question that the company has never answered satisfactorily: Why does GE-a sprawling conglomerate that chronically underperforms the market-still exist?

Since Immelt became CEO, GE's shares have declined 30 per cent, while the S&P 500 index more than doubled.

Immelt oversaw a period of consolidation for GE over the best part of two decades, following 20 years of significant growth under the leadership of Jack Welch.

In a sign of continuity, GE said Kieran Murphy, who currently heads life sciences, would lead the wider GE Healthcare division - and the company stated bluntly: "Healthcare is a key GE business now and in the future". The appointment is the result of succession planning that's been under way since 2011, the company said. 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 company will press ahead with its target of cutting overhead costs by US$2 billion by 2019 and boosting profits to US$2 a share next year.

Since joining GE Healthcare in 2014, Mr. Flannery has led the turnaround of the business, increasing organic revenue by five percent and margins by 100 bps in 2016.

With the company for 30 years, Flannery is now President and CEO of GE Healthcare.

Mr. Flannery commented, "Today's announcement is the greatest honor of my career".

On day one, Wall Street seemed happy with Flannery's selection.

"Immelt moved GE away from financial services and brought the company back to its bread-and-butter around heavy industrial services for manufacturing, oil, gas and energy", said Andy Sivaraman, senior vice president at Paramus, N.J. -based GE partner ITC Infotech.

Recommended News

  • Trump on counterattack after Comey testimony

    Trump on counterattack after Comey testimony

    The Secret Service "handled recording systems within the White House for past presidents", according to the Journal . Trump Jr. argued Saturday that Comey was being disingenuous in his description of the meeting.
    Brexit talks can start 'when UK is ready', says EU chief negotiator

    Brexit talks can start 'when UK is ready', says EU chief negotiator

    Then in April, Cameron's successor, May, called an early election that again stalled talks with Brussels. The EU Commission's Brexit man Michel Barnier also felt it was time Britain sorted out its government.
    US Attorney General to testify before Congress over contacts with Russian Federation

    US Attorney General to testify before Congress over contacts with Russian Federation

    Newsmax CEO Chris Ruddy told Judy Woodruff of "PBS NewsHour": "I think he's considering perhaps terminating the special counsel". The matter is also being investigated by several congressional panels, including the Senate Intelligence Committee.
  • North Korean prisoner Otto Warmbier returns to the USA

    Tillerson said the State Department is still working to secure the release of three other US citizens detained in North Korea. And Yun was dispatched to North Korea and visited Warmbier with two doctors on Monday, and demanded his release.

    LeBron's finals triple double history doesn't ease loss

    STEPHANIE ABBATI: They play unselfish basketball every night, in and out, and I think that's why they are so unbelievable . The team had met, socialized and posed for pictures with Barack Obama after winning the title in 2015.

    CM Chouhan, Wife Sadhna Begin 'Peace Fast' at Dussehra Maidan

    He also said the Modi government has launched a number of schemes for the betterment of farmers thereby boosting their income. It bolstered his image as a pro-farmer chief minister even though he had done little to assuage the woes of farmers.
  • Blumenthal: Let Judiciary panel take crack at close-mouthed Sessions

    I've never received any detail, briefing on how hacking occurred or how information was alleged to have influenced the campaigns . " I did not have any private meetings, nor do I recall any conversations with any Russian officials at the Mayflower Hotel ".

    Were Russians spying on Kansas infrastructure? McCain asks Sessions

    Sessions argued that in the context of that hearing, "my answer was a fair and correct response to the charge as I understood it". Sessions on Tuesday defended his involvement in Comey's firing despite recusing himself from the Russian Federation probe.

    Banks gives Highlanders thrilling win over Lions

    All Blacks coach Steve Hansen may lean towards Dagg to start against Samoa in Auckland on Friday because of his lack of game time. Lions skipper Sam Warburton had conceded his first Test place against New Zealand was in doubt after recent injury problems.
  • Golden Knights should stock up on goaltenders

    Golden Knights should stock up on goaltenders

    Wednesday, June 21: During NHL Awards show in Las Vegas, the league will announce the Golden Knights' Expansion Draft selections. All teams must exposes at least one goaltender who is under contract for 2017-18, or who is a restricted free agent this summer.

    Golden State Warriors parade plans announced

    Not to mention he got a quick jab at his critics with a well-timed Nike commercial shorty after the confetti fell in Oracle Arena. The Warriors-Cavaliers matchup marked the first time in league history two franchises have played in three consecutive Finals.
    Ex-NBA player Rodman expected to arrive in North Korea on Tuesday

    Ex-NBA player Rodman expected to arrive in North Korea on Tuesday

    His publicist also pointed out that Rodman was in the unusual position of being friends with both Mr Trump and Mr Kim. And Yun was dispatched to North Korea and visited Warmbier with two doctors on Monday, and demanded his release.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.