GE said Monday that Mr. Immelt will be replaced by the head of the company's health care business, John Flannery, and retire as chairman of the board on December 31. The board selected them as finalists after lengthy interviews last month at an offsite location in NY. GE's stock performance is making shareholders more and more furious. Bornstein was promoted to vice chair of the company.
GE said Immelt's departure was not triggered by outside influences and was the culmination of six years of succession planning. Trian declined comment on the CEO change yesterday.
Flannery praised Immelt's leadership, saying the changes he made took "courage" and the company now is "clearly better positioned" in its markets because of the outgoing leader's efforts to simplify operations. "It's been ongoing for four years". Year-to-date, GE has declined -10.88%, versus a 9.37% rise in the benchmark S&P 500 index during the same period.
For 16 years, Jeffrey Immelt has led General Electric while the sprawling conglomerate sold off one business after another in order to refocus. That underperformance had some pressing for more urgency from Immelt.
"John is the right person to lead GE today". GE also said it would seek to link bonuses for senior managers to achieving those cost-cutting and profitability goals.
Sales and earnings are expected to be down this quarter, and being a multinational the company is going to be hurt by a strong dollar, he said. At an April activist conference in New York, Trian co-founder Ed Garden upped the ante.
It was at the Electrical Products Group Conference in May that Immelt's differences with Trian became obvious.
Among other industrial conglomerates, United Technologies (UTX) dipped 0.6% to 119.88 to re-enter buy range, Honeywell (HON) eased 0.4% to 133.26 but remains near a 135.20 buy point, while US -listed shares of German rival Siemens (SIEGY) dropped 2%. The fund is already up by at least $250 million since it disclosed the $2.5 billion bet in 2015, though the shares are still far below the $45 share price it targeted.
"GE's digital-first transformation is a sound strategy, and I'd be surprised if they changed course", said Tom Hopcroft, president and CEO of the Massachusetts Technology Leadership Council, in an e-mail.
Flannery, a married father of three, has at least one thing on his side as he prepares to move into the CEO's office at GE's new headquarters in Boston.
During a career that has taken him from Latin America to Asia and then back to the U.S., Flannery has been leaned on by management to goose profits at struggling units, expand internationally and engineer acquisitions.
"Sixteen years leading a company like this is enough time", he said in an interview.
UK royals honor London fire victims as anger mounts
Six bodies have been recovered from the gutted 24-storey tower, while 11 have been located inside, but can not yet be removed. Mayor Sadiq Khan was confronted by an angry young boy demanding answers to why a fire broke out in Grenfell Tower.
UFC Fight Night: KO victory for Holms
She got the win, and then went on to record a few more underwhelming victories before getting the call to fight for the title. Relying heavily on a series of leg and side kicks, Holm kept her composure before exploding with another high switch kick.
Four-way tie for lead at the US Open
Five hundred yards from the tenth hole, it's a part of Erin Hills many visitors don't get a chance to see: the maintenance area. But the world's top three missed the cut - the first time that has happened at a major since the rankings began in 1986.
Railway track near London tower blaze closed due to debris risk
Queen Elizabeth II and Prince William met with volunteers who have been distributing supplies for those affected by the disaster. A lawyer for the family told CNN that Trevisan spoke with her parents before she died, telling them: "I am going to heaven".
London Police Raise Death Toll In Tower Fire To 30
Firefighters are still searching for victims in the 24-story Grenfell Tower that went up in flames early Wednesday. Seventeen people are known to have died but that figure is set to rise, with fears the death toll could exceed 60.
Rep. Steve Scalise remains in critical condition, doctor says
The FBI said that the shooter's weapons found at the scene - a 9mm handgun and 7.62mm caliber rifle - had been legally purchased. Hodgkinson, 66, of Belleville, was shot dead by Capitol Police after he opened fire on congressmen Wednesday in Alexandria, Va.
Four-way tie at US Open
DJ looked very disappointed as he was hoping to defend his title while Day and McIlroy seemed more resigned to their fate. The leaderboard is shaping up quite nicely. "Just to see their games and how they play, I've grown up watching them".
10 still in critical condition after London fire
Clements Church, where survivors and the loved ones of victims from this week's fire at Grenfell Tower have congregated. Floral tributes and messages for the victims of Grenfell Tower are seen in London , Britain, on June 16, 2017 .
Senate rule places GOP health bill on fast track
Senate GOP leaders say that the time has come to make decisions on the healthcare bill, but they are not setting a firm timeline. Hatch, after conferring with an aide, did not commit to a hearing but said Democrats were welcome to give ideas on the bill .