Changes occurring in leadership in two giant tech companies, General Electric (NYSE:$GE) and Uber (not yet publicly traded), has captured the attention of reporters, stock traders, investors, and consumers everywhere. After more than 15 years, CEO of General Electric (GE) Jeff Immelt will be retiring, while CEO and co-founder of Uber Travis Kalanick is said to be receiving pressure to take a leave of absence from the company.
John Flannery will be taking over from Immelt as GE CEO as of August 1, 2017. It should also be noted that Immelt will remain Chairman of GE throughout the year before being succeeded by Flannery on January 1, 2018. Various reports have stated that the transition would not result in any major changes, but instead will continue to build upon GE’s many projects, aspirations, and the unity of the acquisitions the company has made over the years.
When Immelt first succeeded the then GE CEO Jack Welch — whom many deemed as legendary — in 2011, the electric-tech company had been falling from an all-time price peak. Then, in 2008, GE’s stock took another major hit due to the Great Recession. As such, GE’s stock has been down 29% during the 15+ years that Immelt served as CEO. This is a relatively small fall compared to other companies. Since the Recession in 2008, GE’s stock has yet to reach its previous $40+ stock price. The stock is currently just under $29 per share in the pre-market.
In the wake of many negative reports regarding Uber, Kalanick is reported to be taking a leave of absence as CEO of the company. However, this could be complicated by Emil Michael, Uber’s Chief Brand Officer (CBO), who is reportedly stepping down from his position effective as early as today. Michael’s decision to step down as well as rumors of Uber’s board pressuring Kalanick to take a leave of absence are most likely caused by the results of the investigations of ex-Attorney General Eric Holder and various sexual harassment claims that went unhandled by Uber’s human resources team.
With results of the investigation — sparked by misogyny and the irresponsibility of all those involved — about to be publicized, Uber’s board is attempting to retain control of the situation by having Kalanick step away for a bit and instead have him succeeded by co-founder Garrett Camp. Kalanick has been largely blamed for creating the problematic work culture at Uber.
However, neither Kalanick nor Camp are the types of people to be professional leaders, so Uber shareholders should not expect this to be the company’s last shakeup this year. More headlines are sure to be released and public attention gained as Holder’s report is publicized — investors in this tech company should be prepared for all the possible directions the company will go.
Featured Image: Independent.co.uk
