>> John Flannery the chairman and CEO of General Electric, abruptly removed by the company's board Monday, just over a year after Flannery took the top job. The departure comes as one of America's best known company struggles to revive its power business, which the company said Monday would take a $23 billion hit.
Reuters Breaking Views columnist Tom Burkle>> I think the board had to be losing patience because, Flattery took more that three months when he took over the job he said I'm gonna examine things top to bottom. I'm gonna really get to grips with the problems in the company, and he took a big write off for reinsurance a business GEE had not even been doing for 10 years but still had exposure to.
And yet still these problems occur like power, which is yet another write down, in this case, $23 billion, so I think they clearly lost patience. The stock itself is now worth basically a fifth of what it was 20 years ago. This was, at briefly around the turn of the century, the most valuable company in America, actually in the world.
And today it's worth well prior to the bump in the stock today was worth less than $100 billion.>> Investors loving the ouster which lifted the company shares up more than 15%. The stock has lost more than half its value since Flannery took over in August of last year.
>> We've been ready for a long while. It was time for the board to step up. Under prior CEOs, Jeff Immelt and Jack Welch, the CEO and held the chairmanship at the same time, they really controlled the agenda of the board, packed the board with people who were favorable to their view, and there really wasn't enough scrutiny or corporate strategy.
Flannery started to change that, and actually is a victim of the changes he initiated to actually bring in serious oversight, and serious people onto the board.>> He'll be replaced by H Lawrence Culp Junior who is known for turning around global conglomerate Danaher. GE said he had the unanimous support of the board.