Thread regarding General Electric Co. layoffs

Why was GE destroyed? The 100 BILLION DOLLAR question.

"Both Welch and Immelt behaved as if their body odour was perfume. They believed their own hype and bought back stock and stock and more stock. Total shares repurchased were over 100 billion dollars. Just 30 billion of that money now would solve the credit rating problems."

(https://ftalphaville.ft.com/2018/02/19/1519031430000/The-buyback-backlash--GE-as-exhibit-A/)

"GE... was one of Wall Street’s major share buyback operators between 2015 and 2017; it repurchased $40 billion of shares at prices between $20 and $32. The share price is now $8.60, so the company has liquidated between $23 billion and $29 billion of its shareholders’ money on this utterly futile activity alone."

(https://www.marketwatch.com/story/misguided-share-buybacks-are-hollowing-out-companies-balance-sheets-and-will-lead-to-even-bigger-trouble-2018-11-20)

"I'm willing to bet anyone that the $46 billion GE spent over the last decade on buybacks, according to S&P Dow Jones Indices, and the $24 billion the company spent on buybacks in 2016 and 2017 alone, would be better served in its checking account, giving it more runway to restructure the company back to profitability."

(https://www.cnbc.com/2018/12/11/investors-should-be-furious-3-stock-buybacks-that-went-horribly-wrong.html)

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| 3111 views | | 13 replies (last May 15, 2019) | Reply
Post ID: @OP+Z0Q9dga

13 replies (most recent on top)

Immelt believed his own hype...so did many of his board, Comstock, miller. The drive to IIOT and this $224bn that the company was allegedly going to turn over by 2022 and send the share price soaring. Comstock I can see round corners, the future what a joker she just self promoted herself on various social media platforms because she worked for GE she was listened to.

Miller, CFO, CIO promoted the big changes in IIOT, never stayed in one place to reap what she sowed. Employed Ruh!!!! Thought she could defy the laws of physics and improve performance out of places like Africa. Transportation what IIOT did she bring there that wasn't already in place or planned to be in place?

Mediocre board full of dreamers. Glad Culp is at the helm and dream time is over.

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Post ID: @4eef+Z0Q9dga

"yes man" are not only in BOD, they are all over the place!

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Post ID: @3wtn+Z0Q9dga

You make it sound like as a whole we could really fk up as long as we demonstrated the right values.

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Post ID: @2you+Z0Q9dga

Near the end of Welch's time, in addition to managing for results, he added managing for culture. Immelt swung that even further empowering HR to have a final say on all promotions. HR knows nothing about running a technical company. GE came to be managed to the impression it made on HR.

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Post ID: @2qee+Z0Q9dga

The reason for so many board members is to avoid this fate. The group is like a immune response system of body. They failed to stop Trian from hijacking the agenda and should be sued for failing in their fiduciary duty. No one on current board wants that - people in glass houses.

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Post ID: @2xym+Z0Q9dga

Restructuring of power again is the next big move. Our great new leadership will cut headcount drastically and start from scratch. There is nothing to do but wait for the call from the greedy corporate leadership of this failed structure created by leadership of the past.

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Post ID: @1byc+Z0Q9dga

The board failed as governance body. CEO was the chairman of the board.

https://www.foxbusiness.com/markets/jeff-immelt-destroyed-general-electric-ken-langone

https://www.cnbc.com/2018/12/19/ex-ge-director-ken-langone-blasts-fallen-giant-as-unfortunate-disaster.html

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Post ID: @1rlf+Z0Q9dga

"CEO did what the board wanted him to do."

Really?

The CEO was the Chairman of the Board.

The CEO was known for tolerating no dissent from his personal opinion.

The CEO removed Board members who dared to question his vision.

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Post ID: @1lyd+Z0Q9dga

“It was run by people who were not very bright.” I think that is, in all honesty, the punchline. GE didn’t create great managers under Welch and Immelt; perhaps it never did. It chose its leaders in an ineffective way, and those leaders perpetuated the flawed systems that brought them into power. In terms of analysis and strategy, those leaders mastered creation of the appearance of rigor, not actual rigor.

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Post ID: @1djk+Z0Q9dga

Activist shareholder can destroy value by influencing CEOs to turn their back on employees and customers, in order to make a quick buck for activists like Trian. Trian put $2.5B in 2014 and wanted GE to take on more debt and return the money to shareholders through buybacks and dividends. 18 board members failed in their duty.

CEO did what the board wanted him to do.

Poor risk management.

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Post ID: @1vbe+Z0Q9dga

Agree with your post provided you’d gut hourly headcount in Power2019

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Post ID: @1rpr+Z0Q9dga

It was run by people who were not very bright or competent people combined with “yes man” type BODs.

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Post ID: @1ibi+Z0Q9dga

because the vast majority of "leaders" are only concerned about their own well being and increasing their own wealth not the community, the employees, shareholders, etc

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Post ID: @wtl+Z0Q9dga

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