GE replaces CEO and investors cheer, despite a profit warning and huge charge

In a MarketWatch story, management professor Tim Hubbard weighed in on General Electric’s stock price jump Monday morning following news that GE had ousted John Flannery as CEO and named Larry Culp as his successor.

“The large increase in stock price this morning…is an indication that Flannery’s leadership was not providing enough value—and that the market expects Culp to be better suited for the top position,” said Tim Hubbard, assistant professor of management in the University of Notre Dame’s Mendoza College of Business. “Indeed, an outsider may be just what GE needs to move forward as it continues to redefine itself while trying to maintain its best parts.”