Watching GE struggle is actually ‘painful,’ Bob Nardelli says

Watching General Electric struggle is actually painful, said Bob Nardelli, the company’s former transportation CEO and also also also power systems CEO.

GE’s famously predictable stock cost has fallen 26 percent that will year. John Flannery replaced Jeff Immelt as CEO in June. Earlier that will month, the company made several management alterations and also also also and also also also added Trian Partner’s founding partner and also also also chief investment officer Ed Garden to its board of directors.

“(Those were) some of my best days, both with the colleagues I the had chance to work with. I was blessed and also also also fortunate to get mentored by Jack Welch, who was clearly the best leader, the ultimate leader and also also also the ultimate CEO,” Nardelli told CNBC’s “Fast Money” on Monday.

Welch, who grew GE’s value through $13 billion to several hundred billion dollars, created a competitive and also also also collegiate atmosphere at the company, Nardelli said. that will helped create a “beauty” of a portfolio. When one area of the company was down a bit on earnings, another would likely help make up for the item, Nardelli said.

“We always had that will yin and also also also yang kind of thing going on so we were able to have steady, predictable earnings quarter after quarter, year after year. and also also also that will’s probably what’s missing a little bit,” he said. “If you look at the goes ins and also also also the goes out, there’s been a lot of goes outs, yet not a lot of goes ins.”

He said he doesn’t know if he would likely point his finger at any one person for GE’s struggles. However, he did say GE needs to maintain its dividend or else risk losing confidence — and also also also shareholders.

The company has already fielded criticism for not adequately reassuring investors the dividend would likely remain in tact. Earlier that will month, a GE spokeswoman told CNBC “the dividend remains a top priority” in response to JPMorgan analysts saying they see “a dividend cut or ‘adjustment’ as ‘increasingly likely.”

“If you’re in your 401K and also also also you’re from the twilight years, you’re genuinely counting on that will dividend because you’re not genuinely getting any value,” Nardelli said. “the item’s genuinely a dividend stock. and also also also if that will’s cut, I fear you may see a lot more people move away.”

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