Jeffrey Immelt To Step Down As General Electric CEO

Long-time General Electric Company (NYSE:GE) CEO Jeff Immelt stepped down in a sudden and surprising move on Monday, as the industrial giant promoted from within to fill the important role. And this year, GE is down 6.9 percent as the index climbed 7.7 percent.

But, despite the potential for changes, the early prediction among some local business leaders is that the 55-year-old Flannery will continue down the path Immelt has put GE on, broadly speaking.

"My guess is they've probably got the portfolio of businesses close to what they want it to be", Greeley said. GE began the process of relocating its global headquarters from Fairfield, CT, to Boston a year ago, and Immelt has made efforts to connect with the local business community. As of 2016, the company had invested $20 billion in clean technology innovation and solutions that returned more than $270 billion of revenue, Ecomagination Global Executive Director Deb Frodl told GTM's Julia Pyper.

General Electric Company shares rose $0.46 (+1.65%) in premarket trading Monday on the news.

The change comes as GE has been under pressure by activist investor Trian Fund Management to slash costs and boost profits in the company's core industrial business.

Flannery most recently showed off his ability to turn around a business as head of GE's health-care unit, which makes diagnostic imaging machines.

Immelt, who took over from the legendary Jack Welch, oversaw major deals such as the 2015 purchase of the power assets of French industrial giant Alstom and a spate of large divestments from GE Capital after the 2008 financial crisis that essentially unloaded what was effectively the fifth biggest USA bank after the financial crisis hit the unit.

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$2 billion in costs to align executive bonuses with cuts and profit goals.

Mr Immelt also oversaw the divestment of GE Capital - its massive lending unit - shifting the conglomerate's focus from finance to manufacturing, and bet on developing digital technologies to transform the company's factories. Trian and GE also tied senior management compensation to delivering on the more ambitious goals.

"John is the right person to lead GE today", Immelt said in a statement, according to CNBC.

Here are the five biggest challenges Immelt faced during his time as CEO of GE.

Vertical Research analyst Jeff Sprague agreed with Davis and expects the company to lower expectations for its earnings targets.

Under Immelt, GE has sold off many of its disparate divisions to give it more of an industrial focus. GE and competitors like Siemens see big opportunities in that sector as the world moves away from coal and toward cleaner natural gas, solar power and wind energy. He also jettisoned NBC Universal, the news and entertainment unit, as well as GE's appliances and plastics divisions.

CNBC reported that Flannery "has been named CEO of the company, effective August 1, and chairman effective January 1, 2018".

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