John Flannery, now president and CEO of GE Healthcare, has been named CEO of the company by GE's board of directors, effective 1 August 2017, and chairman and CEO effective 1 January 2018.
In this Monday, May 8, 2017, file photo, General Electric CEO Jeff Immelt speaks during a groundbreaking ceremony at the site of GE's new headquarters, in Boston. Flannery is coming from the position of president of GE Healthcare and is credited with turning around the division under his tenure. He has made dramatic changes to GE's business, not only through completing $260 billion in asset sales for GE Capital over the past two years, but in taking on big acquisitions and divesting out of businesses like GE Appliances, NBC Universal and GE Plastics.
Flannery has led the turnaround of GE Healthcare, increasing organic revenue by 5% and margins by 100 basis points in 2016, GE said.
The company's shares were up 3.6 per cent in premarket trading.
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Immelt has been at the helm of the conglomerate for 16 years, overseeing a transformation that included selling numerous company's units. "The plan for the GE CEO transition process was set in 2011", said Brennan, adding: "The board is confident that in the years to come, GE investors and employees will benefit from Jeff's hard work".
Jeff Immelt, who has led General Electric since 2001, is stepping down. Investors have been unhappy with the way Immelt struggled to "connected with investors" over the past decade. Early in his GE career he worked on corporate restructurings. Instead, Mr. Flannery and GE have doubled down. He expanded Life Sciences and also launched Sustainable Healthcare Solutions.
GE said that during Immelt's tenure, the company almost doubled its industrial profit, and operating earnings per share were rose about 50%. Mr. Immelt had told people close to him for years that he didn't want to repeat the divisive and protracted succession process that put him in the top job when he took over from Mr. In addition, current chief financial officer Jeff Bornstein has been promoted to vice chairman.