General Electric’s board of directors removed John Flannery as CEO due to frustration with the pace of his turnaround plan for the embattled industrial conglomerate, sources familiar with the situation told CNBC. Flannery took on the job in August 2017.
The frustration among GE board members “hardened over the last several weeks,” Sorkin said. Part of that frustration was “with the lack of concrete decision making made in a very short time frame,” CNBC’s David Faber added, citing sources.
Flannery’s removal “was not driven by the turbine issue” which came up last week but instead was a reaction “to the slow pace of change,” Sorkin said. Its board of directors met Wednesday to discuss how widespread the turbine failure was, according to The Wall Street Journal.
Flannery reportedly reassured employees that the company’s engineers had found a solution to the flaw and told staff to “fight for the company,” saying media reports overplayed the turbine failure.
GE shares rose 13 percent in trading after the announcement Monday .