The firm, under investigation by the SEC over accounting issues and its insurance business, is also saddled with a giant financial arm it is trying to cut back – and its subprime mortgage practice is dealing with a DOJ investigation.

To underscore the severity of its challenges, it also cut its dividend last year, only the second time that has happened in the company's history.


The CEO move, while sudden, is understandable to some industry watchers. “The large increase in stock price this morning ... is an indication that Flannery’s leadership was not providing enough value – and that the market expects Culp to be better suited for the top position,” Tim Hubbard, assistant professor of management in the University of Notre Dame’s Mendoza College of Business, told MarketWatch, suggesting that, “indeed, an outsider may be just what GE needs to move forward as it continues to redefine itself while trying to maintain its best parts.”

The spinoff of GE Healthcare was announced in late June, as the final major deal designed to cut debt, simplify company structure, and raise cash. These have included spinning off its train manufacturing business and the $3.3 billion sale of its distributed power division.

“We are aggressively driving forward as an aviation, power and renewable energy company – three highly complementary businesses poised for future growth. We will continue to improve our operations and balance sheet as we make GE simpler and stronger,” ex-CEO John Flannery said at the time.

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