Perhaps you have heard that Jeff Immelt, CEO of General Electric, will be stepping down and that John Flannery, the current President and CEO of GE Healthcare will assume that role. Immelt was appointed on September 7, 2001 and despite many efforts at selling off businesses, the conglomerate has lagged the S&P 500 over that period – more severely as of late. We view the move as positive for the company as well as for the price of the stock over the short term. We are also encouraged that the board appointed Mr. Flannery and consider this a wise decision. Investors will afford Flannery a honeymoon period and then will hold him to the same standards that it held for Mr. Immelt.
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