The hottest General Electric Immelt the worst boss

2022-07-31
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Ge Immelt: America's worst boss

CEO of General Electric: Jeff Immelt

no one would think that taking over general electric from Jack F. Welch was an easy job. During Welch's 20 years in power, the share price of GEC soared 60 times

since then, GE's annual stock return has been only -12%, 11% lower than the S & P 500 index, and its market value has plummeted from $390billion to $198billion

this record and Immelt's annual average income of $14.4 million over the past six years made him one of the worst performing American bosses. In 2008, he refused to pay a year-end dividend and received only $5.3 million in salary

Immelt's failure lies in the use of leveraged trading. In fact, Welch has repeatedly adopted this measure in the past. When Welch was in office, Ge often used its AAA debt rating to obtain low-cost financing, and then lent it to airlines, commercial real estate developers or consumers at higher interest rates

since the latter used for thicker peek films and sheets took over Ge from Immelt, the company's short-term and long-term debt has soared from $232billion to $524billion, greatly exceeding the debt raising speed during Welch's period

however, GE's era of low-cost financing has recently come to an end. Immelt borrowed $10billion from Warren Buffett's Berkshire Hathaway at a 10% interest rate last year, and the company lost its AAA rating in March this year. Now, if Immelt wants to revive Ge, he must work on the company's non-financial business. After tax earnings from these businesses fell 21% last year to $17.4 billion

however, GE has made new breakthroughs in a batch of high-end metal structural materials and special functional materials. It says that since Immelt took over the post, the compound annual growth rate of the company's profits has reached 7%, while the annual growth rate of its revenue has also reached 8%. At the same time, it has also distributed dividends of $109billion to shareholders on some secondary clamps. Of course, these figures sound good, but they are not completely satisfactory. (

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