General Electric Co. GE 7.09% fired Chief Executive John Flannery after 14 months in the job as deeper problems in the conglomerate’s troubled power unit blindsided the board and caused GE to warn it would miss profit and cash targets.
The company named board member Larry Culp, who became a director in April, its new chairman and CEO, effective immediately. Mr. Culp, a former CEO of Danaher Corp. , had joined GE’s board as part of a broader shake-up of the struggling conglomerate.
Shares of GE, which have tumbled by half during the past year after the company slashed its dividend and missed financial targets, rallied on the news. On Monday, the stock rose 7.1% to $12.09.
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