Trian Takes Board Seat at General Electric
October 09 2017 - 8:10AM
Dow Jones News
By Cara Lombardo
General Electric Co., which has been under pressure from
activist investor Trian Fund Management LP to cut costs and improve
its stock performance, has elected a founding partner of Trian to
replace a longtime board member.
Ed Garden, Trian's chief investment officer, will replace former
Deere & Co. CEO Robert Lane, who is retiring from GE's board
after 12 years, the company said Monday.
The change comes a day before Procter & Gamble Co.
shareholders decide whether to elect Trian's Nelson Peltz to the
consumer-product giant's board in the most expensive proxy fight
ever.
Mr. Garden said in prepared remarks that although he is
disappointed by the performance of GE's stock, which is down 23%
this year, he sees the company as a long-term investment with
"significant upside."
Trian became a GE shareholder in 2015 and holds a 0.82% stake in
the company. While the investment was originally friendly and Trian
didn't ask for a board seat, Trian has become more aggressive as GE
shares have fallen and costs haven't come down as quickly as
desired.
Trian has been supportive of GE's new CEO John Flannery, who
took over in August and has been implementing a turnaround plan at
the industrial conglomerate.
The company announced last week that three top executives,
including GE's chief financial officer, were leaving the company.
All were top lieutenants to former CEO Jeff Immelt, who stepped
aside in August and resigned as chairman last week, three months
ahead of schedule.
GE shares are down 0.4% in premarket trading Monday.
Write to Cara Lombardo at cara.lombardo@wsj.com
(END) Dow Jones Newswires
October 09, 2017 07:55 ET (11:55 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Mar 2024 to Apr 2024
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Apr 2023 to Apr 2024