The tumult continues in General Electric. The US industrial conglomerate announced Monday before the opening of Wall Street that it is changing its main executive again. John Flannery resigns as CEO, one year and four months after taking the reins. He is relieved by Larry Culp with immediate effect.
General Electric has also announced charges worth 23,000 million dollars on Monday. The restructuring put in place by Flannery was not convincing investors. The stock market valuation of GE fell last Friday of the 100,000 million for the first time since the financial crisis. The change of command caused their shares to suddenly rebound by 15% before the market opening. Culp directed the Danaher conglomerate until 2014 and was part of GE's board of directors since April.
GE lost more than half of its value during the last 12 months. The company explains that the poor performance of its power generation business will affect the company's results. In this sense, it anticipates that the benefit per share and the generation of cash will be lower than previously indicated. For this reason, anticipate that you will have to apply additional charges to your accounts. He will give more details when he presents results for the third quarter.
Investors were not the only ones frustrated with the slowness with which GE is transforming. There is also concern within the board of directors. The precipitate resignation of Flannery is explained, in this sense, by a problem of execution of the plan that had been marked after succeeding Jeff Immelt. The iconic US company left in June the Dow Jones index, which is made up of the most representative companies in the economy. It came to have an assessment close to 600,000 million in 2000.
Relay in Pzifer
Also before the start of the session on Monday, changes were announced in the Pfizer address. Ian Read will leave on January 1 the position of CEO of the world's largest pharmaceutical company, which he has held for eight years, although he will continue as CEO. He will then replace Albert Bourla, his second in command.