Saturday, 20 October, 2018

General Electric announces slew of executive changes, including new CFO

The logo of Down Jones Industrial Average stock market index listed company General Electric is shown at their subsidiary company GE Aviation in Santa Ana California General Electric announces slew of executive changes, including new CFO
Nellie Chapman | 11 October, 2017, 00:50

He accepted a board appointment Monday for Ed Garden, a founding partner of activist shareholder Trian Fund Management, which has been pressuring GE for an overhaul. GE already has signaled that a current EPS goal of $2 for 2018 may be too high. The Boston-based maker of jet engines, gas turbines and ultrasound machines maintains "active and constructive dialogue" with Trian, according to the statement. Year-to-date, GE has declined -20.76%, versus a 15.42% rise in the benchmark S&P 500 index during the same period.

Flannery has been meeting with investors and has said he will consider all options to turn the company around. Analysts believe he may reduce expenses by an even greater amount.

General Electric 's ( GE ) attempts at an image makeover with a slew of cost-cutting measures and executive reshufflings may be signs that things are about to get worse instead of better at the industrial giant. Two other longtime company veterans and GE vice chairs, Beth Comstock and John Rice, are retiring from GE. Earlier, in August, the company had appointed John Flannery as its new CEO. Jamie Miller, CEO of GE Transportation, has been named financial chief, effective November 1, 2017.

Bornstein was once considered a contender to succeed former chief executive Jeffrey Immelt. "Her efforts to push GE into the future have been essential to GE's growth strategy; including identifying the potential of the Industrial Internet and helping transform GE into a digital industrial company". "Bornstein had a tough time making his cashflow numbers". GE has missed some key targets in recent quarters including free cash flow - misses that took place under Bornstein. Trian owns about 1 percent of GE shares and has been pushing for changes at the company.

The company cut its dividend in 2009 during the financial crisis, the first such move for GE since the Great Depression.