General Electric’s new CEO is making it clear who is in charge now.
John Flannery, GE’s new CEO and chairman of the board, approved a new activist shareholder to the board just days after a chief financial officer shakeup, Bloomberg reports. The company’s stock is down about 3% on Monday after the news.
On Monday, Flannery named Ed Garden, a founding partner of activist investing firm Trian Fund Management, to GE’s board of directors, according to a report from Rick Clough of Bloomberg.
The move continues a series of steps Flannery has taken in a shakeup of the company’s top executives. Just three days prior to the board seat approval, Flannery welcomed Jamie Miller to the CFO position from his previous place at the head of the company’s transportation division.
Beth Comstock and John Rice, both vice chairs of GE, were also reported to be leaving their positions.
Flannery is on a path to turn around this year’s biggest loser on the Dow Jones Industrial Average through these shakeups. Bloomberg reported that Flannery is hoping to make big changes to the company’s diverse portfolio, and is open to a dividend cut.
Toward that goal, the company recently offloaded its industrials unit for $US2.6 billion, and shares initially jumped after the announcement of Flannery’s rise to CEO.
GE has fallen 25.47% this year.