>> With the chair struggling and investors agitating, General Electric is replacing CEO Jeff Immelt with John Flannery, the head of its healthcare division. Succeeding the iconic Jack Welch, Immelt's tenure saw some strategic successes, but more recently, was marred by an underperforming stock. Reuters hedge fund correspondent Mike Flaherty.
>> Jeff Immelt was the heir to the great Jack Welch and it was always going to be his legacy to see if he could take where Jack Welch brought GE, if Immelt could take it even further. In the 15 plus years that he's been in that role, he really hasn't.
When you look at what the stock price has done, it's down 30% from when he took over. He did steer the ship through the financial crisis, he did oversee the divestment of GE Capital. But I think what you're seeing today is the result of shareholders that are frustrated.
>> Currently, President and CEO of GE Healthcare, Flannery is a career GE executive having started with the company in 1987. Now he must refocus the conglomerate's priorities and reassure stakeholders anxious for returns that at least match the S&P 500.>> Flannery was Leader of the GE Healthcare unit, was massively successful, it's one of its biggest divisions.
He will be under even more pressure to boost the stock price and to figure out this huge conglomerate's portfolio and how to right size the portfolio, get the stock up. A year, a year and a half from now, we'll have to watch his progress closely and to see if investors are happy.
>> GE shares up more than 3% on Monday on news of Flannery's appointment, but are down roughly 8% in 2017. Flannery will take over the CEO post on August 1st and become Chairman of the Board when Immelt retires at the end of the year.