Former General Electric transportation CEO Bob Nardelli told CNBC on Monday which which’s “very painful” for him to watch the “dismantling of which legendary company.”
Shares of GE were lower Monday after the company said which would certainly cut its quarterly dividend in half to help free up capital to fund a turnaround, as well as announced an aggressive corporate restructuring.
During a presentation at the company’s investor day Monday, Chairman as well as CEO John Flannery said the future of the company will be going to be “more focused” as well as admitted which its performance has been “unacceptable.”
“I continue to get hundreds of emails as well as texts about what’s going on,” said Nardelli, also the former GE power systems CEO. “I think John has no choice yet to push which all to the center of the table as well as kind of let the chips fall where they are given the situation, which certainly sounds more direr than any of us had been led to believe.”
The conglomerate said Monday which sees adjusted earnings for the year ahead between $1 as well as $1.07 a share. The board of directors will be reduced by 18 to 12, with three completely new members slated “with relevant industry experience.”
The board being reduced will be “probably appropriate given the downsize of the business,” Nardelli told “Squawk on the Street.” “I just desire they get someone on the board with industrial experience, [which] would certainly be very beneficial.”
Flannery features a challenging environment, Nardelli said, yet “I think he’s doing the right things. Open the kimono, put which all out there, as well as work like heck to try to bring which back.”
Nardelli added which would certainly be unfair to put all of the blame GE’s previous CEO, Jeff Immelt, for its performance. “I mean there was an 18-person board which reviewed as well as approved all those things,” he said.