Jeff Immelt, the General Electric CEO, is retiring after a planned shift of upper level management in the multinational firm.
For the past 16 years Jeff Immelt has served as General Electric’s (GE) chief operational officer (CEO).
However, the conglomerate is changing up its upper management structure.
While key players in the firm saw the shake up coming, Immelt’s resignation highlights overall drastic changes in the company.
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Replacing the dedicated CEO is John Flannery.
Until now, Flannery was Chairman and CEO of GE’s healthcare sector.
Thus, his new role overseeing the whole company will come into effect on August 1 2017.
However, Immelt will continue acting as chairman of the board until December 31, 2017, at which point he’ll retire.
But Immelt and Flannery aren’t the only GE figures experiencing a career change.
Jeff Bornstein, the company’s chief financial officer, will step up to become vice chairman.
Additionally, Kieran Murphy will take on the mantle of CEO of the healthcare division. To do so, he will step away from his current position as GE healthcare’s president.
The dramatic shift does not come as any sort of surprise, though.
In fact, these moves were planned as far back as 2011, when GE’s board created its present succession plan.
Immelt spearheaded an ambitious downsizing that featured letting go of financial assets to the tune of $260bn (£205bn).
Thus, his efforts positioned GE to develop its software and data resources to perform more competitively.
Said Jack Brennan, an independent director on the board:
“Jeff has positioned the company incredibly well for the future.
“He executed a massive portfolio transformation and navigated the company through economic cycles and business disruptions. Today, GE is a high-tech industrial company with a bright future.”
Yet, some pundits believe that Immelt was did not step down as CEO of his own accord.
Supposedly, shareholders were not completely satisfied with GE’s financial results under Immelt’s guardianship.
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