GE: Jeff Immelt, Please Stop Talking

I need Jeff Immelt to worry far more about his company and far less about telling people about it. Why? His credibility was shot last year and nothing he says publicly inspires any reassurances anymore. Mr. Immelt, let the company's performance talk for you.

Let's walk back in time.

It was April 2008 when Immelt told investors that earnings results for 2008 "were in the bag" only to reverse that statement just weeks later.

It was Feb 5th this year that Immelt backed the dividend payout for GE only to reduce it 70% two weeks later. For the record I know the dividend "is a board decision" but Immelt is Chairman of The Board, I am guessing he has some sway in the decision making process?

Now:

General Electric Co (GE) CEO Jeffrey Immelt acknowledged on Tuesday the company's reputation had been "tarnished" and said the entire finance industry would need to be rethought due to the global economic meltdown.

The U.S. conglomerate is already identifying parts of its hefty finance arm that it will exit in the coming years, GE's chief executive said in his annual letter to shareholders.

"Our company's reputation was tarnished because we weren't the 'safe and reliable' growth company that is our aspiration. I accept responsibility for this," Immelt, 53, wrote. "No one is more disappointed than I am with the performance of our stock in this tough environment."

I think this latest falls under the "no sh%t" category. Here is the thing. Had Immelt NOT said anything about earnings and the dividend, his recent dividend cut would be looked at as prudent rather than desperate and this statement would not be necessary.

Anything said from this point forward, until results improve will be looked at with a huge dose of warranted skepticism. Past statements have proven that looking down the road is not Immelt's strong suit, let's work on the here and now. Immelt needs to drop out of sight and re-emerge when operations improve, assuming he is still there.

GE investors do not need Immelt "falling on his sword", they need him to fix the finance unit and turn this boat around... the sooner the better...

Disclosure: Long GE

Comments

[this4now:]

Immelt has proven he is out of touch over and over. It is amazing that he is still employed. My only fear is that the rest of the board is even less capable than he is....I hold GE and was planning to retire this year with over 50% of my portfolio in GE securities.Immelt just move my retirement into the future for some time to come. The first class action suit to be filed will find me waiting to join....

Mar 04 06:49 AM

[User 369223:]

Immelt is a desaster!!! I do not understand why he is still in the driving seat ....

Mar 04 07:19 AM

[notsosmart:]

when are the dumb-dumbs going to learn that you cant believe any ceo's & forget the bod's as they are selfserving?lying is the name of the game & there is no accountability.wake up sheeples.

Mar 04 09:52 AM

[nevhtur:]

What is going on with GE? Is GE now considered a dinosaur in the industry and can not survive?

Mar 04 10:06 AM

[Smallinvestor:]

How can the board and the major investors allow a man who has taken the value of the company down 81% since he took over continue on the job. Is there no one better that can instill some confidence that a great company like GE is not going down the tubes like GM. It is time we get a "nutron Jack" back to run this company!

Mar 04 11:09 AM

[nevhtur:]

I agree. Most of these CEO's are on auto pilot, and when turbulant times hit they are totally unprepared.

Mar 04 11:12 AM

[jaume ribe,...:]

What about to thing of Mr. Immelt like a honest man instead of putting every aficionado him/herself playing to lead such a corporation as GE.? Have no doubt Mr. Immelt will turnaround GE.

Mar 04 11:18 AM

[yank:]

"Neutron Jack" was the one who hand-picked Immelt over better qualified GE executives like McNerney and others. Welch's selection proves the point that outgoing CEOs should NEVER have anything to do with selecting their successor.


On Mar 04 11:09 AM Smallinvestor wrote:

> How can the board and the major investors allow a man who has taken
> the value of the company down 81% since he took over continue on
> the job. Is there no one better that can instill some confidence
> that a great company like GE is not going down the tubes like GM.
> It is time we get a "nutron Jack" back to run this company!

Mar 04 12:47 PM

[guythomas:]

If this was the only take away from Jeff Immelt's annual report letter mr Sullivan could find I have to wonder why anyone would pay any attention to him at all. The letter pointed out decent 2008 results, a plan to fortify defenses for a bad global 2009 and position the company for the future. GE is a reflection of the world economy and it's present woes. As one reader commented and Mr Immelt himself stated GE has been around along time thru thick and thin and will weather this storm. To the reader who had his total retirement investment in GE, What where you thinking? As a former GE employee who made a fortune in the GE run up in the 90's and than sold it, (Not because GE was failing but I could not see GE going much higher than $150 and wanted to stand aside to see where the out of control stock market would take it, I am still standing aside after 9 years but am about ready to jump back in, again waiting for the market to come to it's senses.

Mar 04 01:24 PM

[James Quinn:]

seekingalpha.com/artic...

Mar 04 03:39 PM

[levin70:]

From the 10K

Current portion of long-term debt and short term debt total $193 billion.

The reason the market is punishing GE is that pretty much everyone out there is worried that GE will be unable to roll the debt.

The board should fire immelt and find someone who can clearly articulate how that debt rollover is going to be managed. I would expect that to lead to a higher stock price.

Regards

Mar 04 03:47 PM

[Smallinvestor:]

I agree completely!!!
The sooner they do it the better. Tomorrow would be good,
But turefully, I don't think the board has any more sense than Immelt.
Until they feel their positions are in jeopary nothing will happen.


On Mar 04 03:47 PM levin70 wrote:

> From the 10K
>
> Current portion of long-term debt and short term debt total $193
> billion.
>
> The reason the market is punishing GE is that pretty much everyone
> out there is worried that GE will be unable to roll the debt.
>
> The board should fire immelt and find someone who can clearly articulate
> how that debt rollover is going to be managed. I would expect that
> to lead to a higher stock price.
>
> Regards

Mar 04 04:18 PM