Industry Addendum
GE installs outsider CEO after firing Joe Flannery
October 1st 2018
Appointed as CEO in August last year, General Electric (GE) has fired Joe Flannery in a surprise move that initiated a huge surge in the conglomerate’s share price. Read More »
Flannery, who was recently in Malaysia to announce an US$80 million upgrade of GE’s MRO and support services, was replaced by Larry Culp, 55, a GE board member since February and the CEO of industrial equipment supplier, Danaher Corp. Media reported Culp was the unanimous choice for the position because of his 14-year record at Danahar where he grew the company into a broader conglomerate and increased earnings.
Reuters said GE was unhappy with Flannery’s slow progress in a much needed turnaround. Issues of his leadership came to a head at the end of last month, when directors learnt about a US$23 billion write down in the power plant division. The board “was persuaded to seek a new CEO”, the news agency said.
A scaled back GE, which was once the most valuable company in the U.S., will focus on jet engines, power plants and renewable energy.
