![]() ![]() Welch’s good times couldn’t last forever, and Immelt had a tough act to follow. ![]() This argument is definitely understandable, yet it is scarcely convincing. To focus on the stock’s negative return during Immelt’s 16 years as CEO and pit it against the sixtyfold return over Welch’s 20-year term is myopic. However, he didn’t act quickly and decidedly enough to fix the ill-fated ship’s rotten bits. Early in his tenure as CEO, Immelt realized the scope of a disaster in the making. Unbeknownst to many analysts and investors-and overlooked by Jack Welch-buffs,-General Electric had been spoiled by greed, lack of transparency, and “lax oversight and buried risks.”Īs a rising star, Immelt was part of Welch’s apparatus, perhaps to a smaller extent, at the GE Medical Systems division that Immelt ran previously. In 2001, Immelt took over a ship that was in trouble but wasn’t sinking yet. The fall of General Electric is really the story of how long-time CEO Jeff Immelt got saddled with the doomed legacy of the previous CEO, Jack Welch. Decades of Bad Decisions and Careless Oversight Ruined GE It’s brimming with lessons about the hazards of obsessively focusing on impressing Wall Street. Wall Street Journal reporters Thomas Gryta and Ted Mann’s crisp Lights Out: Pride, Delusion, and the Fall of General Electric (2020) draws together the vital episodes in one impassive narrative. The story arc of the unraveling of General Electric should be familiar to followers of business news over the last two decades. ![]()
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