Summary
General Electric Company (GE) announced a significant leadership transition through an 8-K filing on June 12, 2017. Effective August 1, 2017, John L. Flannery will assume the role of Chief Executive Officer (CEO), succeeding Jeffrey R. Immelt, who has led the company for 35 years. This CEO succession has been in planning since 2011, indicating a deliberate and strategic shift. Immelt will remain as Chairman of the Board until December 31, 2017, after which Flannery will also assume the Chairman title, consolidating leadership. The company also made amendments to its By-Laws to separate the roles of Chairman and CEO, and to reassign Presidential duties to the CEO. In conjunction with his promotion, Flannery's compensation was adjusted, including a salary increase to $2,000,000 and performance-based bonuses tied to cost reduction and operating profit goals. Additionally, Jeffrey S. Bornstein was promoted to Vice Chairman while retaining his CFO role, receiving a grant of restricted stock units.
Key Highlights
- 1John L. Flannery appointed as the new CEO of GE, effective August 1, 2017.
- 2Jeffrey R. Immelt to retire as CEO on July 31, 2017, after 35 years with the company.
- 3Immelt will transition from CEO to Chairman of the Board until December 31, 2017; Flannery will become Chairman on January 1, 2018.
- 4GE's By-Laws were amended to separate the roles of CEO and Chairman.
- 5Flannery's compensation package adjusted to reflect CEO role, including a $2M salary and performance-based bonuses.
- 6Jeffrey S. Bornstein promoted to Vice Chairman, continuing as CFO, and granted restricted stock units.
- 7Kieran Murphy appointed as the new President & CEO of GE Healthcare.