Chairman and chief executive officer of General Electric must have seemed like a dream job to John Flannery. Having worked at the General for 30 years, following in the footsteps of such giants as Jack Welch and Jack Donaghy was the ultimate goal. And then he got there and found out that his immediate predecessor, Jeff Immelt, had ruined it.
It gets worse: Instead of a big fat bonus check at the end of the year, Flannery and about 1,000 other GEers will have to make due with a whole lot more GE stock. Which is increasingly worthless, on account of the continuing torrent of news like this:
General Electric, the nation’s largest industrial company, cut its dividend on Monday, only the second time it has done so since the Great Depression.
The company announced before the start of stock trading that it would reduce its quarterly payout by half, to 12 cents a share from 24 cents a share.
The company said it wants to be more transparent and will focus its reporting on more-streamlined measures that emphasize the amount of cash the company is generating.
“Simplification of metrics is going to be a huge focus going forward,” Chief Executive John Flannery told investors. “Complexity has hurt us.”
GE Scraps Long-Term Bonuses for CEO Flannery and 1,000 Managers [Bloomberg]
G.E. Cuts Dividend as New C.E.O. Moves to Streamline an Industrial Giant [NYT]
GE CEO Flannery Says Company’s Reporting Has Been Too Complex [WSJ]