Power Switch: GE Names a New CEO, Shakes Up the Boardroom
Shares of the U.S. industrial powerhouse General Electric leapt 16 percent yesterday when the company announced it’s swapping its top exec. John Flannery (who was with GE for just a year) is being replaced by H. Lawrence Culp Jr. as both chairman and chief executive officer. The change is set in motion immediately.
What’s Pushing Prices Up?
- GE’s power division dragged earnings this year, leaving cash flow and profits short of the 2018 forecast.
- Management warns that the weaker performance at GE Power will keep 2018 numbers below what analysts expected.
- Investor confidence surged once the company signalised a fresh direction with Culp stepping in.
Stat‑Out Quote from the New Boss
“GE remains a fundamentally strong company with great businesses and tremendous talent,” Culp says. “It’s a privilege to lead this iconic company. We will be working very hard in the coming weeks to drive superior execution and move with urgency. We remain committed to strengthening the balance sheet, including deleveraging. Tom and I will work with our board colleagues on opportunities for continued renewal, unlocking the value of GE. I’m excited to get to work.”
Why It Matters
This isn’t just a head‑count shuffle. The new CEO’s focus on execution speed and balance‑sheet health signals a strategy to reverse the dip caused by under‑performing power assets. If successful, the company could reclaim its former glory – and keep the stock up.
Stay tuned for the next wave of updates as GE rolls out its new leadership vision.
