Jeff Immelt

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Jeff Immelt
JeffreyRImmeltAugust2009.jpg
Born
Jeffrey Robert Immelt

(1956-02-19) February 19, 1956 (age 65)
EducationDartmouth College (AB)
Harvard University (MBA)
Political partyRepublican
Spouse(s)Andrea Immelt
Children1 daughter
Immelt at U.S. Climate Action Partnership event in 2007

Jeffrey Robert Immelt (born February 19, 1956) is an American business executive currently working as a venture partner at New Enterprise Associates.[1] He previously served as the CEO of General Electric from 2001 to 2017, and the CEO of GE's Medical Systems division from 1997 to 2000.[2]

Early life[edit]

Immelt was born in Cincinnati, the son of Donna Rosemary (née Wallace), a school teacher, and Joseph Francis Immelt, who managed the General Electric Aircraft Engines Division.[3][4]

Immelt attended Finneytown High School; he played football in college and was an offensive tackle.[5] He earned an A.B. in Applied Mathematics and Economics cum laude[6] from Dartmouth College in 1978. He was president of his fraternity, Phi Delta Alpha, and currently serves on the Dartmouth board of trustees.[7][8]

During his years at Dartmouth he worked summers on a Ford assembly line in Cincinnati; after graduating he worked for Procter and Gamble. He obtained an MBA from Harvard Business School in 1982[9] and described business school as "one of the most intense times of your life."[10]

General Electric[edit]

Immelt joined GE in 1982, working in GE's plastics, appliances, and healthcare businesses. He became a GE officer in 1989, joined the GE Capital board in 1997[11] and took on the leadership of GE Healthcare[citation needed] before being named CEO in 2001.

CEO[edit]

The September 11 attacks took place four days after Immelt became CEO,[12] costing GE's insurance business $600 million, killing two employees and directly affecting the company's Aircraft Engines sector.[citation needed] After becoming CEO, Immelt offered an expanded set of financial reports in addition to GE's traditional format.[13]

Immelt's predecessor, Jack Welch, preferred organic growth.[citation needed] In contrast, Immelt participated actively in mergers and acquisitions,[14][15] purchasing Amersham PLC for $9.5 billion in 2004[16] and Alstom's power business for approximately €12.4  billion in 2015.[17] Immelt sold GE's plastics business for $11.6 billion in 2007,[18] NBC Universal for $8 billion in 2013,[14][19] and GE's appliances business for $3.3 billion in 2014.[20] In 2015, GE announced it would sell its real estate holdings for $26.5 billion and most of GE Capital's assets.[21][22][23][24]

Employment[edit]

At the end of 2001 when Immelt replaced Welch, GE employed 219,000 worldwide and 125,000 in the US, as reported in its SEC Form 10K for 2001. GE's SEC Form 10K for 2014 states that worldwide employment is 305,000, and US employment is 136,000. These employment levels have varied significantly under Immelt.[citation needed]

General Electric year end employment has varied from 273,000 in 2010 to 305,000 in 2014, a net increase of 37,000. Employment had dropped from 315,000 in 2002 to 307,000 in 2013.[25]

Criticism[edit]

During Immelt's tenure as CEO, shares of GE dropped 30%, while the S&P 500 rose by 134%.[26] GE restated its earnings in 2005[27] and agreed to pay the SEC $50 million to settle allegations of accounting fraud in 2009.[28]

GE receiving aid from the Federal Reserve while not paying federal income taxes became a political issue in the 2016 presidential campaign,[29][30] although GE did pay taxes in other jurisdictions.[citation needed] At the end of 2012, over $100 billion had been kept offshore to avoid a special federal repatriation tax.[31] In 2015, GE announced a repatriation program for part of its cash balances.[citation needed] In 2016, GE moved its headquarters from Connecticut to Massachusetts, citing Connecticut's tax increases.[32]

Immelt had an empty private jet following his own private jet, in case there were delays with his primary jet.[33]

Compensation and retirement[edit]

Immelt's compensation has fluctuated significantly. As CEO of General Electric in 2007, Immelt earned a total compensation of $14,209,267.[34] In 2008, he earned a total compensation of $5,717,469.[35] In 2009, Immelt earned a total compensation of $5,487,155.[34] In 2010, Immelt's compensation nearly tripled to $15.2 million.[36] Immelt had a total five year compensation of $53.82 million through 2011, an income which ranked sixth among executives employed by US-based conglomerates. Some components of his total compensation package over the years have been newsworthy. In some years he was granted stock options at $0, and in other years he was paid no bonus.[37] In 2014 his compensation totalled $18.8 million,[38] a decrease from his 2013 compensation of $25.8 million.[39] That 2013 compensation had risen 20% over his 2012 compensation of $20.6 million.[40]

On June 12, 2017, GE announced that Immelt would retire as CEO and would be replaced by John L. Flannery.[41] Immelt stepped down in October 2017.[42]

Later career[edit]

Uber[edit]

Immelt was initially a top candidate to become CEO of Uber, replacing founder Travis Kalanick. He was initially Kalanick's favorite for the post, in part because he was still open to Kalanick still having a significant role.[43]:313, 318 However, Immelt's presentation before the board was poorly received.[43]:321 Immelt was privately informed by a board member that he would not get the job and he withdrew himself from consideration.[43]:322–324

athenahealth[edit]

On February 7, 2018, Immelt became the chairman of the board at athenahealth.[42] Immelt joined the board of directors of Radiology Partners two weeks later.[44] On June 6, 2018, Immelt was named executive chairman of athenahealth.[45] athenahealth was acquired by Veritas Capital in 2019.[46][47][48]

Tuya Smart[edit]

Immelt became a board member of Tuya Smart in September 2019.[49][50] Immelt attended the Consumer Electronics Show in 2020 on behalf of Tuya Smart.[51]

Built Robotics[edit]

On June 30, 2020, Immelt was announced as an advisor to Built Robotics. He joined Eric Sellman, Vice President of Civil at Mortenson, in the role.[52]

Philanthropy[edit]

Charitable activities[edit]

Immelt serves on the board of two non-profit organizations.[2][53] He was a Charter Trustee of his alma mater, Dartmouth, from 2008 to 2016."Trustees Emeriti". Dartmouth.edu. Retrieved 2021-01-18.</ref> He has also served Dartmouth on its Alumni Council and as a class officer.[54]

Immelt has spoken about the benefits of football to his career. He announced a series of initiatives with NFL Commissioner Goodell including a GE investment of $40 million to develop diagnostic equipment for use in head trauma injuries, and GE's participation in a separate $20 million effort to develop safer helmets and other equipment.[55]

The GE Foundation has been praised for its charitable contributions under Immelt's leadership.[56][57]

Immelt has returned to his hometown High School, Finneytown, to contribute to the Finneytown Schools Education Foundation. The Foundation established the Jeff Immelt Award for leadership in football.[58]

Public service[edit]

Immelt served as chairman of The Business Council from 2005 to 2006.[59]

Immelt was as a member of the board of the Federal Reserve Bank of New York from 2006 to 2011.[2][60]

As one of America's top CEOs, Immelt has been a leading proponent of diversity in the work place, saying "If you're serious about ... making the world work better, the only discriminating factor should be excellence. In other words, GE is committed to diversity ...[because] ... it's the only way to do business right ... [GE is] committed to employing a diverse workforce with the most innovative minds in the world."[61]

Immelt was appointed to the President's Economic Recovery Advisory Board in 2009[62] and appointed chairman in 2011.[63] The council met four times, ending on January 17, 2012.[64]

Honors[edit]

Jeff Immelt has earned significant honors throughout his career, beginning with his graduation from Dartmouth cum laude and earning the Earl Hamilton Varsity Award, as a college football player, for friendship and character. Later in 2002, he received the Robert Fletcher Award from Dartmouth's Thayer School of Engineering.[54]

Career honors[edit]

Barron's has named Immelt one of the "World's Best CEOs" three times;[65] other outlets have criticized his performance.[66][67][68] He is a member of The American Academy of Arts & Sciences.[69] The Financial Times named him "Man of the Year" in 2003.[2] Immelt was named to Time magazine's 100 most influential people in the world in 2009.[70]

In 2009, Immelt won the Oslo Business for Peace Award, an award chosen by winners of the Nobel Prizes in Economics and Peace and given to leaders in the private sector who have demonstrated transformative and positive change through ethical business practices.[71]

Immelt was awarded the 2014 American Football Coaches Association Tuss McLaughry Award, given to a distinguished American (or Americans) for the highest distinction in service to others.[72] In accepting the award, he said "I am a product of football and I owe a great debt of gratitude to that system. What I learned playing football enters my life every day." [73]

In April 2015, Immelt won the 20th edition of the Leonardo International Prize "as a foreigner who reinforced his country's cultural and economic ties with Italy."[74]

On 24 December 2015, Immelt was listed by UK-based company Richtopia at number 50 in the list of 500 Most Influential CEOs.[75]

In 2017, Immelt was honored with an Edison Achievement Award for his commitment to innovation throughout his career.[citation needed]

Personal life[edit]

Immelt is married to his wife Andrea and they have one daughter, Sarah.[76] They lived in New Canaan, Connecticut until 2015.[77] They then purchased a home in Boston.[78]

References[edit]

  1. ^ O'Brien, Kelly J. (2018-02-01). "Jeff Immelt joins venture capital firm with growing Boston presence". Boston Business Journal. Retrieved 2018-02-01.
  2. ^ a b c d "Jeffrey R. Immelt". Newyorkfed.org. Retrieved 2015-12-03.
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  4. ^ Byrum Keller, Valerie (1974). Immel and Imel families in America: twigs and branches of the Immel family tree. Schlechter's. p. 25.
  5. ^ "GE's Jeff Immelt: how the US can win (15:00)". Reuters.
  6. ^ "Jeffrey Immelt, Investiture Speaker". Engineering.dartmouth.edu. Retrieved 2015-12-03.
  7. ^ "Jeffrey R. Immelt '78". Dartmouth.edu. Retrieved 2015-12-03.
  8. ^ http://thedartmouth.com/2008/09/06/news/boardupdate. Retrieved September 7, 2008. Missing or empty |title= (help)[dead link]
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  19. ^ Lieberman, David (2013-03-19). "Comcast Completes Acquisition Of GE's 49% Stake In NBCUniversal". Deadline. Retrieved 2015-12-03.
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  22. ^ Collins, Allison. "For GE Capital's Coveted Antares Unit, New Owner Means Expansion Beyond Senior Debt". Mergers & Acquisitions, Latest News. Retrieved 2015-11-03.
  23. ^ Sidel, Robin; Linebaugh, Kate (2015-08-11). "GE to Sell Health-Care Lending Operations to Capital One for $9 Billion". Wall Street Journal. ISSN 0099-9660. Retrieved 2015-11-03.
  24. ^ "BMO to Buy GE Capital's Transportation Finance Unit - Bloomberg Business". Bloomberg News. Retrieved 2015-11-03.
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  34. ^ a b [1] Archived March 18, 2010, at the Wayback Machine
  35. ^ "Bonus, incentive waiver by GE | TopNews United States". Topnews.us. Retrieved 2015-12-03.
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  43. ^ a b c Mike Isaac (2019). Super Pumped: The Battle for Uber. W. W. Norton. ISBN 9780393652246.
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  45. ^ "Press Releases | athenahealth | Press Release". newsroom.athenahealth.com. Archived from the original on 2018-06-28. Retrieved 2018-06-21.
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  47. ^ "athenahealth Enters Definitive Agreement to be Acquired by Veritas Capital For $135 Per Share in Cash". PR Newswite. August 26, 2016.
  48. ^ "Verisk Health Announces Rebrand to Verscend Technologies". BusinessWire. August 26, 2016.
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  52. ^ "Jeff Immelt, Former CEO of GE, Joins Built Robotics as an Advisor" (Press release). San Francisco, CA, USA: Built Robotics. PR Newswire. June 30, 2020. Retrieved 2020-06-30.
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  58. ^ "Most Likely to Succeed". Cincymagazine.com. Retrieved 2015-12-03.
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  62. ^ "Los Angeles Times article Who's Who on new economic advisory board". Latimes.com. February 6, 2009. Retrieved February 5, 2009.
  63. ^ Goldman, Juliana and Rachel Layne. "Obama Taps Immelt to Head Panel in Bid to Boost Jobs". Bloomberg.com. Retrieved February 25, 2012.
  64. ^ JOSH GERSTEIN (18 Jan 2013). "Obama Jobs Council hits 1 year without official meeting". Politico. Retrieved March 10, 2014.
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  68. ^ "Oops! Five CEOs Who Should Have Already Been Fired (Cisco, GE, WalMart, Sears, Microsoft)".
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  70. ^ "The 2010 Time 100". Time. Retrieved May 6, 2010.
  71. ^ https://businessforpeace.org/past-honourees/
  72. ^ "Tuss McLaughry Award". Afca.com. Archived from the original on 2015-11-07. Retrieved 2015-12-03.
  73. ^ "Jeffrey Immelt to Receive 2014 Tuss McLaughry Award". Afca.com. Archived from the original on 2015-12-08. Retrieved 2015-12-03.
  74. ^ "Nerio Alessandri, Jeffrey Immelt Honored at Leonardo Prizes". Wwd.com. Retrieved 2015-12-03.
  75. ^ "Top 500 CEOs: From Tim Cook to Justine Roberts, These Are the Most Influential CEOs in the World". Richtopia. Retrieved 29 January 2016.
  76. ^ "Jeffrey R. Immelt". Nndb.com. Retrieved 2015-12-03.
  77. ^ "GE CEO Jeff Immelt Sells New Canaan Mansion: Report," Patch, May 11, 2017.
  78. ^ Madeline Billis, "General Electric’s CEO Bought a Home in Boston", Boston, May 6, 2016.

Further reading[edit]

External links[edit]

Business positions
Preceded by
Jack Welch
Chairman and Chief Executive Officer of General Electric
2001–2017
Succeeded by
John L. Flannery
Political offices
Preceded by
Paul Volcker
as Chair of the President's Economic Recovery Advisory Board
Chair of the President's Council on Jobs and Competitiveness
2011–2013
Position abolished