Wednesday, December 12, 2012

JEFFERY IMMELT: WORST EVER CEO OF GE

...atleast that name has GE written on it!

Now how does destroying shareholder value in the long term, and dangerous short-term double-digit decline in earnings indicate “performing well”? We fail to understand! Worse, to cover up the real ‘gloomy’ air floating around the GE campus, Immelt further announced a remorseless $12 million in bonus to reward performance.

And if you thought that was plain numerical criticism, then contrast this: during the same time as this ‘magnanimous doling out of mercies’ is happening, GE has announced its first dividend cut since the Great Depression (that’s 71 long years back!) – a massive 70% cut to just 10 cents a share per quarter.

Bill Rothschild, who once worked GE’s strategy team also comments, “I believe that one of the reasons that GE is in the current situation is that it’s Go Big/Go Global strategies were wrong...” Sad, Immelt thought he was on the right track! One major issue for Immelt is the fact that he took over from a man who ensured that GE’s Mcap rose by more than 1100% during his tenure of 19 years; what a contrast! Surely, Welch’s ‘neutronic’ HR policies worked well for GE’s shareholders, and now it’s time for Immelt to put that rule back into action; question is: who’ll go first? Well, the world can wait for another century, and it will. GE too can, and it will, but only if Immelt puts his name on the ‘first-to-go list’. Dear Welch, your successor wasn’t wrong, his ‘ego’ was... Perhaps you never told him this, allow us to: You don’t have to be right all the time Jeff; you don’t. But you can also never forget your top priority – your shareholders? You did & you deserve the ‘Worst CEO of the century’ award for it.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

For More IIPM Info, Visit below mentioned IIPM articles.

Posted by at
Labels: , , , , , , , , , , , ,