GE's New CEO Bets $2.7 Million He Can Revive the Stock
August 10 2017 - 04:53PM
Dow Jones News
By Thomas Gryta
General Electric Co.'s new boss, John Flannery, is betting on
himself.
Mr. Flannery, who took over as chief executive this month,
bought about $2.7 million worth of GE shares in his 401(k)
retirement account this week, according to documents filed with the
Securities and Exchange Commission.
The purchase comes as GE's share price has dropped 19% in the
last year, missing out on a broad stock market rally that has
pushed the S&P 500 up 12% during that period. On Thursday, GE
shares slipped 1.6% to $25.30.
Mr. Flannery, 55, who has held investment positions during his
30 years at the industrial conglomerate, now owns about 615,436 GE
shares, worth about $15.6 million, according to the filing and
based on the stock's closing price Thursday. A GE spokeswoman said
he was unavailable for immediate comment.
There is a requirement at GE for the CEO to own company shares
totaling 10 times his or her starting salary -- which, in Mr.
Flannery's case, is $2 million, according to regulatory filings --
but Mr. Flannery has five years to reach that $20 million
investment goal.
He also owns 101,000 restricted stock units and options to
purchase about 2.6 million shares at prices ranging from $11.95 to
$38.75.
Mr. Flannery, who formerly ran GE's health-care division, took
the reins on Aug. 1 after Jeff Immelt retired after 16 years. Mr.
Immelt remains chairman until year-end.
Write to Thomas Gryta at thomas.gryta@wsj.com
(END) Dow Jones Newswires
August 10, 2017 17:38 ET (21:38 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
General Electric (NYSE:GE)
Historical Stock Chart
From Feb 2024 to Mar 2024
General Electric (NYSE:GE)
Historical Stock Chart
From Mar 2023 to Mar 2024