New boss to take over at GE as Immelt retires
- Business & Finance
U.S. engineering conglomerate GE has named John Flannery, current President and CEO of GE Healthcare, CEO of the company effective August 1, 2017, and chairman and CEO effective January 1, 2018.
Jeff Immelt, the company’s chairman and CEO, will remain chairman of the board through his retirement from the company on December 31, 2017.
In addition, Jeff Bornstein, current CFO, has also been promoted to Vice Chair of GE.
These leadership announcements are the result of a succession plan that has been run by GE’s board since 2011, GE said on Monday.
Jack Brennan, lead independent director for GE’s Board of Directors, said, “During this time of dynamic global markets and relentless focus on technology and operational excellence, there is no better person to lead GE than John Flannery. He brings unique experience and a strong skill set to the job.”
Flannery began his career at GE Capital in 1987 where he focused on evaluating risk for leveraged buy-outs.
Immelt said, “John is the right person to lead GE today. He has broad experience across multiple businesses, cycles and geographies.”
Regarding his appointment, Flannery said, “I am privileged to have spent the last 16 years at the company working for Jeff, one of the greatest business leaders of our time.”
He also added: “In the next few months, my focus will be on listening to investors, customers and employees to determine the next steps for GE.”
According to the company, Immelt led the transformation of GE into a simpler, stronger and more focused digital industrial portfolio aligned to key markets – power, aviation, transportation, healthcare and oil & gas.
Under his leadership, GE has completed $260 billion of asset sales for GE Capital since 2015, acquired global energy leader Alstom, announced the combination of GE Oil & Gas with Baker Hughes, and divested legacy businesses like GE Appliances, NBC Universal and Plastics.
To remind, GE and Baker Hughes in late October 2016 entered into an agreement to combine GE’s oil and gas business, GE Oil & Gas, and Baker Hughes to create the second largest oilfield technology provider.
The “New” Baker Hughes will be an equipment, technology and services provider in the oil and gas industry with $32 billion of combined revenue and operations in more than 120 countries.
The proposed transaction between the two companies was recently cleared by the European Commission under EU merger control rules. Baker Hughes and GE expect to close the transaction in mid-2017.
Earlier in June, the duo announced the executive team that would lead the new company upon closing of the pending transaction.
It is worth noting that the combined executive team of the new company will be headed by Lorenzo Simonelli, who is currently President & CEO of GE Oil & Gas.
Offshore Energy Today Staff