General Electric has a new leader—again. After just over a year with CEO John Flannery at the helm, the company’s board of directors has decided to implement a new leader, H. Lawrence Culp, Jr., as GE’s power business continues to show “weaker performance” with GE failing to meet its profit and cash-flow goals for the year.
“GE remains a fundamentally strong company with great businesses and tremendous talent,” said Culp, who will take the reins as CEO and chairman from Flannery immediately, in a statement. “It is a privilege to be asked to lead this iconic company. We will be working very hard in the coming weeks to drive superior execution, and we will move with urgency.”
The board of directors also named Thomas Horton as lead director. Culp and Horton have served on GE’s board since April 2018. While there are leadership changes those won’t impact CMO Linda Boff, according to a representative for the company.
“Larry Culp has a proven track record in company transformation,” said Horton in a statement. “He is a strong leader with deep knowledge of industrials and technology, and an intense focus on execution, organization and talent development.”
Culp previously turned around Danaher, where he was the president and CEO from 2000 to 2014, transitioning the company from an industrial manufacturer to a science and technology company, according to GE’s release.
At GE, Culp will not only be charged with improving the power business but with “establishing healthcare as a separate independent entity” as GE aims to “fully exit” its oil and gas business “in an orderly manner,” according to a representative for the company.
Horton was previously the chairman and CEO of American Airlines from 2011 to 2013 and, after merging American Airlines with U.S. Airways, the chairman of the American Airlines Group from 2013 to 2014.