April 17, 2008
GE's Problems Continue
Ex-CEO John Welch has publicly criticized the current CEO Jeffry R. Immelt for not being correct in Immelt's projections of earnings. It is a very rare public moment. The problem is, of course, deeper. GE's stock has slumbered since Immelt's appointment. GE is simply too large; it's returns cannot beat the market, it is the market. Yet the company, through management missteps, can have returns that fall behind the market. GE needs to bust itself up. A bust-up, once announced, would immediately drive up the stock price and reflect a board and a CEO that care about investors, not the management perquisites of size.
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