General Electric Co. (NYSE: GE) saw its shares hit yet another low to start out the week, after the firm announced that it would be overhauling its board of directors. This company has been the subject of harsh criticism over the past year, and not without reason, as the stock has dropped by over 50% in this time. At this point GE has to do something to stop the bleeding, and changing the board may be its best option.
Essentially, the firm is reducing the size of its board to just 12 directors. Out of these 12, there will be three new candidates.
The following nine incumbent directors will stand for reelection: Sébastien M. Bazin, W. Geoffrey Beattie, John J. Brennan, Francisco D’Souza, John L. Flannery, Edward P. Garden, Risa Lavizzo-Mourey, James J. Mulva and James S. Tisch. Brennan will stay on as lead director to facilitate the transition to a new lead director and new board leadership in the coming year and will not stand for reelection in 2019.
These are the three new candidates:
- H. Lawrence Culp Jr., former CEO and president of Danaher
- Thomas W. Horton, former board chair and chief executive of American Airlines
- Leslie F. Seidman, former chair of the Financial Accounting Standards Board
The 2018 board slate aligns the Board with the future of the Company. We are adding proven world-class expertise in capital allocation, aviation, accounting and financial reporting. The new Board is unified in its mission to work with John Flannery and GE’s senior leadership team to drive the Company’s focus on superior performance and to maximize the long-term value of GE’s world-class businesses for our shareowners. The smaller Board will also help to promote the heightened engagement and sense of accountability that we want to drive at every level of the Company.
Shares of GE were last seen down about 3% at $14.03 on Monday, with a consensus analyst price target of $18.57 and a 52-week trading range of $13.95 to $30.54.