General Electric (GE) announced on Monday the departure of its president and CEO, Jeff Immelt, who put forward his bid to re-focus the activities of the US conglomerate in its industrial origins, that is, in energy.
Flannery, who until now has been responsible for General Electric’s health business, will become CEO next August 1 to replace Immelt, who will step down as chairman on January 1. John Flannery, 55, is currently the head of GE’s health division, whose sales grew 5 percent last year.
He joined the group in 1987 in what was then GE Capital, the financial arm that suffered the effects of the subprime mortgage crisis destabilizing the conglomerate, whose activities range from the manufacture of turbine engines for aircraft to medical equipment.
“John is the right person to lead GE today. Investors will trust him, as well as our GE customers and employees,” Immelt said.
The announcement is “a great honor,” said Flannery.
The management of Immelt is likely to continue to be recognized in particular by the acquisition of the energy business of the French group Alstom, which accounted for 70% of its turnover.
GE explained that the departure of Immelt is the part of a succession plan launched in 2011. Since then the US press has speculated frequently about its departure.
The change of direction also occurs when investor activist Nelson Peltz, one of Wall Street’s influential voices, has invested in General Electric, heavily affected by falling oil prices.
The industrial conglomerate also announced that its current chief financial officer, Jeff Bornstein, will be vice chair of the board of directors, according to a statement in which GE announces changes in its top management.
GE noted that since Immelt took over the industrial group in 2001, a few days before the September 11 attacks, the company has returned $143 billion to its shareholders through dividend payments.
The changes in GE’s top management were well received by the markets as its stock rose strongly, up 3.35% on the New York Stock Exchange (NYSE), where its shares have depreciated 8.77% since the start of the year.
