Sunday 10 December 2017

Stop blaming Board of Directors of Indian Companies

General Electric , founded by Thomas Edison, JP Morgan etc., was an iconic American Company that survived three centuries (founded on 1892).

Market Capitalization as on December 08,2017 stood at USD 153 billion ( Jeffery Immelt retired on October 2017) down from USD 387 billion (September 07,2001 Jeffery Immelt CEO joining date).

It is understandable he performed as a CEO during a period dominated by Technology Stocks, credit crisis.

However, one thing that came out recently about Jeffery Immelt was unbelievable.  

According to Wall Street Journal "General Electric Co. executives didn’t notify the company’s board until this month about its regular flying of a spare business jet for its CEO, and it didn’t tell directors that GE had received an internal complaint about the practice several years ago, according to people familiar with the matter."

In short if Jeffery Immelt was flying in a business jet, a spare empty business jet (i.e. extra aircraft) was flying next to it.

Unbelievable.

The best thing GE can do is recover the entire amount for flying the empty business jet from his Full and Final Settlement.

Horror, GE Board was kept in dark about spare jet.

Lesson for me stop blaming Board of Directors in Indian Companies.

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