GE is shuffling its executive suite, naming a new chief financial officer and board member while announcing the departure of three vice chairs.
Last week we reported the earlier-than-expected retirement of CEO and Chairman of the Board, Jeff Immelt, succeeded by John Flannery.
The current CFO and vice chair, Jeffrey Bornstein, will exit the company Dec. 31 after serving 28 years. Jamie Miller, currently the CEO of GE Transportation, will become the new CFO effective Nov. 1.
Bornstein stated, “GE has been my home for nearly three decades, and I am deeply appreciative for the opportunities I’ve had and proud of our many accomplishments over that period. As John evaluates the strategy for GE and puts his leadership team in place, he and I have concluded that this is the right time to bring in a new CFO with a fresh perspective to guide GE’s ongoing efforts to reduce costs, drive growth, improve our performance, and enhance shareholder value. I look forward to working closely with Jamie through the end of the year to ensure a smooth transition.”
Along with Bornstein, vice chairs Beth Comstock and John Rice will retire effective Dec. 31.
GE has also named Trian's Ed Garden to its board. Garden is the chief investment officer and a founding partner at Trian Fund Management. He replaces GE director Robert Lane, who is retiring from the board after 12 years at GE.
Shares of General Electric Co., based in Boston, are down 23 percent this year, and Trian Fund Management is pushing heavily for the company to restructure and revive growth. It became one of GE's biggest investors two years ago with a $2.5 billion investment.
“GE has a diverse and independent board, and we value the wide range of expertise and perspectives that all of our directors bring. We have maintained an active and constructive dialogue with Trian since they became a shareowner in 2015, as we do with all large investors. As GE continues to evolve as a company and address the challenges and opportunities that lie ahead, we also see a chance to evolve as a Board and believe that, based on his track record as a director at other companies, Ed will be able to make significant contributions to GE,” said Jack Brennan, lead independent director for GE’s Board of Directors.
“Over the last 90 days, I’ve met with numerous investors and I value their input and views,” said John Flannery, Chairman and CEO of GE. “Our focus is on delivering for customers, world class operational excellence, integrity, accountability and driving results that will increase shareholder value. I look forward to working with Ed Garden and the entire Board to execute our strategy and drive long-term value for shareholders.”
“Like other GE shareholders, I am disappointed by the recent performance of GE’s stock. But I continue to believe that GE represents an attractive long-term investment opportunity with significant upside. We will remain focused on enhancing long-term value for GE shareholders. I have been impressed by John Flannery and I am excited to work with John and the rest of the Board in the same way that I’ve worked at other companies where I’ve been invited to join the board — collaboratively and with the common goal of driving long-term value for all shareholders,” said Garden.
Portions of this article from Associated Press. Copyright 2017 The Associated Press.