As General Electric Co. (GE) - Get Report moves forward with its plan to reorganize its troubled Power business into two businesses, one of former Chief Executive Officer Jeff Immelt's top executives is returning to help oversee the restructuring.
Boston-based GE announced on Monday, Nov. 19, that John Rice, who spent 39 years at the company, will serve as Chairman of the GE Gas Power business, a newly created position.
Rice, 63, retired on Dec. 31, 2017, a couple months after Immelt left the company. Immelt's successor John Flannery praised Rice in his retirement announcement, saying Rice "is known and respected by government leaders and customers in all of GE's global market for his tireless energy and relentless focus on helping solve their challenges. He is also known and loved by thousands of GE people around the world."
But with Larry Culp now at the helm of the industrial conglomerate, GE is making significant moves to correct the challenges at GE Power. The company said during its third-quarter earnings that the Power division would be split into two units: GE Gas Power and GE Power Portfolio. The decision by Culp to restructure the business came as the company recorded a non-cash goodwill impairment charge of $22 billion, before tax, related to GE Power.
While Rice will advise the GE Gas Power leadership team as it becomes a standalone business unit, Scott Strazik, the current president of Power Services, will serve as CEO of the division.
The company also announced that Russell Stokes, the current CEO of GE Power, will be the CEO of GE Power Portfolio, which includes Steam, Grid Solutions, Nuclear, and Power Conversion assets.
"One of my top priorities is positioning our businesses to win, starting with GE Power," Culp said in a statement. "I look forward to working with John as he returns to GE and Scott and Russell in their new roles."
Shares of GE fell 0.5% to $7.80 a share at 10:45 a.m. New York time after losing more than 2% on Monday..