Flenneri John (John Flannery)

Flenneri John (John Flannery)

2018: Receiving $10 million after departure from the job of the head of GE

At the beginning of November, 2018 the amount of compensation which will be received by John Flenneri after sudden departure from the job of the CEO of General Electric became known. More than $10 million are about the amount.

According to the Bloomberg news agency with the link to the message of the company, a severance pay of John Flenneri will make $4.25 million. $3.75 million more will be paid in the form of remunerations in the form of actions which the company provided earlier including when Flenneri was the CEO of GE Healthcare. $2.16 million more is necessary on deferred compensation.

John Flenneri

Besides, conditions of the employment contract provided that Flenneri can receive not less than $21.9 million from the moment of achievement of 60-year age. By the beginning of November, 2018 to it 57 years.

About unexpected John Flenneri's leaving GE it was announced on October 1, 2018 only 14 months later after position assignment of the CEO. Larry Culp became the head and the chairman of the board of directors of GE.

According to CNBC, Board of Directors of GE was dissatisfied with rates of conversions at Flenneri. In March, 2018 the company  for the first time did not pay an award to the CEO and other managing directors for 125-year history. In day when it was announced John Flenneri's dismissal, the stocks GE rose in price for 16%.

John Flenneri devoted 32 years to work in GE, and agreements with them, including the supplementary pension agreement (GE Supplementary Pension Plan), reflect these merits. Payment of a severance pay to mister Flenneri represents an annual wage in the amount of together with a target cash bonus, said in the statement of GE.

2017: Appointment of GE as the head

In June, 2017 the American diversified corporation General Electric (GE) making a broad spectrum of the equipment announced change of the CEO. It appoints the head of medical division John Flannery.

Jeff Immelt heading GE is about 16 years, will resign the authority on August 1, 2017. It will remain at a position of the chairman of the board of directors till December 31 then it will be occupied by Flenneri.^[1]

John is the suitable person for the management of GE today — Immelt says, commenting on Flenneri's appointment to a position of the head of concern. — It has a wide experience in different spheres of business, cycles of development and regions. He achieved progress and headed one of the most important divisions. It has important lines of the leader: common sense, stability, it is a good pupil, a komandoobrazovatel, the tough person and the competitor. It will be trusted by investors, our clients and the GE command.

The Reuters agency notes that under the leadership of Jeff Immelt GE actively sold non-core assets, including financial, aiming to concentrate on equipment manufacturing for the heavy industry and service in the field of the software. Despite these measures, financial performance of the company remained rather weak — in 2016 heads of GE said that the company will not manage to reach income in $2 for an action by 2018.

John Flenneri did not begin to open the plans on a post of the CEO of GE and only noted that digital technologies will become the central element of its strategy. The company spent billions of dollars for creation of digital business within which electronic sensors work together with analytical software and industrial equipment. However, this activity did not add a lot of profit contrary to expectations of investors, adds news agency.

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