John Flannery is pushing to improve Ge’s overall profitability. The move highlights his confidence in the company’s future.
As per a regulatory filing, John Flannery, General Electric Co’s new CEO has been buying nearly $2.7 million in GE stock in the hopes that the industrial giant’s fortunes is likely to improve.
On Tuesday, Flannery purchased 103,983 GE shares for his 401(k) account and reported it in a filing on Wednesday. After Thursday’s closing, he has nearly 615,000 shares worth $15.5 million.
When Flannery, 55, became GE’s CEO he said he plans on improving GE’s performance. GE’s stock fell by 19% this year, even as broad stock indexes advanced.
According to investors, GE needs to generate more cash, reduce its overheads and widen its profit margins.
During his long term tenure GE’s outgoing CEO Jeff Immelt, who will remain as the company’s chairman through year-end, bought 1.2 million shares of GE stock during his 16-year tenure as CEO.