GE shares closed higher in the US Monday, after the firm announced it was replacing its Chairman and CEO John Flannery, with Lawrence Culp. The board were reportedly increasingly disappointed with the slow pace of change under Flannery’s leadership and have removed him from the role, with immediate effect.
GE shares ended the Monday US trading session, 7.09% higher at $12.09. The stock is also trading in the green in out-of-hours activity.
GE names new CEO
GE said Monday that the board had unanimously voted to install a new leader at the helm of the historic business. Culp, was previously CEO of Danaher, where he led the successful transition of the business from an industrial manufacturer, to a science and technology company.
Culp has been a member of the GE board since April 2018.
“GE remains a fundamentally strong company with great businesses and tremendous talent. It is a privilege to be asked to lead this iconic company,” Culp said. “We will be working very hard in the coming weeks to drive superior execution, and we will move with urgency.”
“We remain committed to strengthening the balance sheet including deleveraging. Tom and I will work with our board colleagues on opportunities for continued board renewal. We have a lot of work ahead of us to unlock the value of GE. I am excited to get to work,” Culp added.
GE names new Lead Director
In addition to the replacement of its CEO, GE also announced the installation of a new Lead Director, Thomas W. Horton. Horton has also been a member of the GE board since April this year.
“Larry Culp has a proven track record in company transformation and delivering shareholder value,” Horton said. “He is a strong leader with deep knowledge of industrials and technology, and an intense focus on execution, organization, and talent development.”
“On behalf of the board, I thank John for his significant contributions and long service to GE,” Horton added.