Markets

GE ropes in Miller as CFO

GE ropes in Miller as CFO

The change is part of the most sweeping moves yet under new Chief Executive John Flannery and takes effect next month.

Shares of General Electric tumbled 4 percent on Monday after several senior management and board changes, including Friday's surprise retirement of its chief financial officer. The company also announced that the two vice chairs of the company, Beth Comstock and John Rice, will be retiring from the company, on December 31.

GE closed Friday's trading session at $24.39. He is also expected to next month outline his plans for a potential overhaul of the company's portfolio, which includes jet engines, gas turbines, locomotives and ultrasound machines. The departures, announced late on October 6, came shortly after Jeffrey Immelt stepped down as chairman earlier than planned.

GE announced Friday that Bornstein is leaving the conglomerate after 28 years of service and will be replaced by Jamie Miller, now CEO of GE Transportation.

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Flannery is already sending signals that he is serious about paring expenses. Year-to-date, GE has declined -20.76%, versus a 15.42% rise in the benchmark S&P 500 index during the same period.

Bornstein was once considered a contender to succeed former chief executive Jeffrey Immelt. When Flannery's appointment was announced, Bornstein, 51, was promoted to vice chair and the company said he would work closely with the new boss.

Analysts expect profit this year of $1.54 a share, according to the average of estimates compiled by Bloomberg, less than GE's forecast of at least $1.60. Now it becomes a question of whether or not GE can find suitable replacements to help solve its cash flow issues and restore growth within its key industrial businesses.

The company cut its dividend in 2009 during the financial crisis, the first such move for GE since the Great Depression.