GE Sacks 13M. Old CEO “John Flannery”, Investors Cheers amid Murky Situation

It has been only 13 months after the American company, General Electric Co (GE), appointed John Flannery as CEO instead of Jeff Immelt to solve the fallen stock. However, the arrival of Flannery did not make the situation any better. Last June, GE was sacked from Dow Jones Industrial Average. It had been the longest-serving component of the blue chip index for 111 years.

The shares still plunged further when the turbine blade at the Colorado Bend power plant had failed, and misread of the market, caused a large amount of equipment in the inventories to be unsold. To make it worse, GE shares had fallen to a nine-year low last week.

 

Then, the Boards of GE suddenly removed Flannery from the position on October 1, 2018, and claimed that they were unsatisfied with the execution that was taking place under John Flannery’s leadership, said the source.

Lawrence Culp, the former CEO of Danaher, will take Flannery’s place, and the investors could not be any happier. GE’s shares raised 7% afterward.

 

It may be just as the source said that the board was unhappy with Flannery, but to remove a CEO after a short period of time may lead to the assumption that the situation in GE is worse than we can imagine.