People don't get it. None of what is going on started with Immelt. Power did not just start cooking its books. They were already burnt by the time Immelt came around. Welch started it all and the stock should never have been as highly valued as it was in the 90s. And as far as the Enron executives comparison and behaving in the direct opposition to the company's values that happened daily at GE. Well known by all employees that the training and communication were the Say and what was Do(ne) was often times quite different. Surprising the Me Too movement has spoken up .. BC, what are you waiting for?
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DAW hit the nail on the head ! When GE stopped lending money or financing everything they did the gravy train of printing money stopped at GE. If you look at GE competition in the power market they are still helping with financing of projects or lining up partners. GE has been doing less and less this hence the reason sales have slowed. To conclude, ratchet down sales expectations, get rid of the layers of middle management at Power and elsewhere. Get rid of almost all of GE corporate roles, they are not needed. Get a real auditor beside KPMG and listen to the new auditor recommended actions. Bring back incentive for individual contributors to help retain key resources. I would simply get rid of general managers, and middle managers and have tech leaders reporting to Vice Presidents. GE cannot afford their current overhead so trim it all. Run the company like you own it!
all of the leaders are millionaires, they made the right decisions, pumping up their compensations and readying the company to be dismantled by the next wave of managers, if you can't see that (or can and just continue to complain/not leave) then ask yourself...what are you waiting for?
When Capital was sold, it prevented the ongoing games from continuing.
Very surprising that leadership did not understand how the entire products side of GE was "Capitalized" with ever thing from fork-trucks to entire manufacturing plants on leases some of which were "synthetic" and never decreased the underlying asset values even after 30 years of the production equipment being in use.
The sale of Capital along with Appliances and other short cycle businesses was what helped me to decide to sell my GE stock when it was in the $30's.
Amazing at how disconnected leadership was from reality when making many of their decisions as most of us working in the businesses could easily see the correct decisions.
KPMG didn't take on all that debt.
About time we got rid of KPMG