General Electric Co has announced that it will combine its power and energy distribution businesses into a single unit called GE Power worth $41.9 billion, and having a share of 30 percent in GE’s overall industrial revenue. This would make it the company’s largest unit, by revenue.
The decision coincides with the retirement of Steve Bolze, the former head of GE’s power unit, just two days after People Matters had reported that John Flannery was picked as the new chief executive officer for GE. Bolze, who was one of the prime contenders for the CEO position, said in a letter to the employees that he had told GE chief executive Jeff Immelt he would retire after a 24 year-long stint at GE, if he was not selected to lead the company.
Some time ago, Jeff Immelt and I agreed that when the succession process was complete, and if I were not chosen, I would retire from GE and move on,” the letter read.
“I cannot tell you how proud and grateful I am to have been considered,” Bolze added.
Russell Stokes, who is currently the President and CEO of GE Energy Connections, will head the newly created GE power division.
Russell brings a strong combination of operational, industrial and energy experience to this role, and can now scale his leadership skills with the combined GE Power and GE Energy Connections,” Jeff Immelt, chairman and CEO of GE, was quoted as saying in a statement.
“He has a keen sense of the market, and knows how to invest in technology ahead of the curve,” Jeff added.
Stokes has been with GE for the past 20 years, and was previously leading its transportation business. He has also held senior roles in GE Lighting and GE Aviation, and across several functions, including sourcing, finance, services and operations.