GE’s CEO Jeff Immelt Steps Down

I am quoted in this Washington Post article on GE’s CEO Jeff Immelt stepping down:

Welch was known for his singular mission: increasing the stock price. He and a cadre of similar executives during the 1980s and 1990s were devoted to maximizing shareholder value. 

General Electric stock jumped 3.5 percent Monday on the news of Immelt’s departure, signalling Wall Street’s positive reception to the change.

“His managerial decisions resulted in investing in projects that did not maximize shareholder value,” said David Kass, a professor of finance at the University of Maryland. 

This article also mentions Berkshire Hathaway’s investment in GE near the beginning of the financial crisis:

At one point, GE went hat in hand to investor Warren Buffett, who lent the company $3 billion in the depths of the crisis on terms that were very beneficial to Berkshire Hathaway. General Electric paid the money back in 2011, including a $300 million bonus, plus accrued and unpaid dividends.



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