General Electric announced Monday that current CEO Jeff Immelt will step down as chief executive effective Aug. 1, a move that will mark the end of his 16-year tenure with the American energy company.
The current president and CEO of GE health care, John Flannery, will replace Immelt in August. Immelt will remain Chairman of the Board through December 31, 2017, the company said in a statement Monday.
Flannery has been with the company since 1987, where he started his career focusing on evaluating risk for buy-outs. The 30-year veteran of GE has spent the majority of his tenure at GE in the financial sector, but has run the company’s health care division since 2014.
“Today’s announcement is the greatest honor of my career,” Flannery said in the statement. “In the next few months, my focus will be on listening to investors, customers and employees to determine the next steps for GE.”
The stock market reacted favorably to the announcement. The company’s shares fell 12 percent on the year, but rose 3.6 percent in pre-market trading Monday after GE publicly announced the change in leadership.
The company reports that the transitioning Immelt out of power has been in the works since 2013.
“Jeff has positioned the company incredibly well for the future,” said Jack Brennan, lead independent director for GE’s Board of Directors. “The board is confident that in the years to come, GE investors and employees will benefit from Jeff’s hard work.”
Immelt led the company through the Great Recession, the restructuring of the GE Capital unit and a shift in company focus from finance to manufacturing.
Immelt has also been fairly critical of President Donald Trump. The CEO has come out swinging on Trump’s travel ban, protectionist policies and climate change stance.
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