Bloomberg News

GE Capital CEO Neal May Step Down, Wall Street Journal Reports

May 30, 2013

General Electric Co. (GE:US) is evaluating successors to Michael Neal, who may step down as chief executive officer and chairman of its financial unit as soon as this summer, the Wall Street Journal reported.

GE Capital executives who may seek the position include William Cary, chief operating officer of the unit, and Mark Begor, who runs its real-estate division and capital restructuring operations, the newspaper said, citing unidentified people familiar with the matter. Neal, 60, has been chairman and CEO for eight years, it said.

The management shift would come as Jeffrey Immelt, CEO of the world’s largest maker of jet engines and diesel locomotives, shrinks GE Capital and focuses growth on the company’s industrial operations after seeking government help in the wake of Lehman Brothers Holdings Inc.’s 2008 collapse. Michael Goodbody, a spokesman for GE Capital, declined to comment when contacted by Bloomberg News.

GE Capital posted profit of $7.4 billion on $46 billion in revenue last year. The unit had $68 billion in cash at the end of the first quarter.

Immelt told analysts and investors in December that GE aims to get 65 percent of its profit from the industrial units by 2015, compared with about 55 percent last year.

Neal joined GE’s industrial business in 1979 before moving to the financial unit in 1987 and turned 60 earlier this year, an age when many of GE’s senior executives move on, the Journal said, citing the unidentified people.

To contact the reporter on this story: James Gunsalus in Tokyo at jgunsalus@bloomberg.net

To contact the editor responsible for this story: Chitra Somayaji at csomayaji@bloomberg.net


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