GE has planned to “eliminate company cars for the senior executives,” a representative told CNNMoney, “as a part of the company’s overall cost reduction.” The move, which was reported by CNBC Now, comes after GE said it would ground its convoy of corporate planes to save money. It’s part of GE’s intentions to save $2 billion in costs before December 2018, and it underscores the pressure GE is under to pivot its poor performance.
GE has for quite some time been one of the most exceedingly awful performing stocks in the Dow Jones Industrial Average. So far in 2017, GE is down 22 percent. This steady decline prompted Jeff Immelt’s 16-year residency as CEO to end. He left the company on Aug. 1. Presently, GE’s new CEO John Flannery is entrusted with renewing the 125-year-old organization. Flannery told members of staff in an update a month ago that he intends to accomplish what GE investors expect of him: to cut expenses and consider individuals accountable.
“I heard them loud and clear,” Flannery wrote. It’s not clear how much cash GE will save from terminating its corporate jet program, and the organization declined to show how much the corporate auto program has taken a toll on the organization. As indicated by reports, in 2016 the organization’s top six executives got more than $1.2 million worth of “other” remuneration, which includes auto benefit charges, home alarm instillation, a yearly physical exam and “certain costs related with the named officials’ and their welcomed visitors’ participation at the 2016 Olympic Games in Rio.”
It’s not clear if “other” pay includes organization autos, and GE did not respond to a demand for comment. Those same officials piled on another $332,850 in costs for “individual utilization of aircraft” in 2016, as shown by archive documents. The six executives include previous CEO Immelt, Chief Financial Officer Jeffrey Bornstein, GE Aviation President David Joyce, Vice Chair John Rice and previous GE Capital International President Keith Sherin.
The organization is also experiencing a restructuring at its corporate home office and in some different territories that could bring about employment cuts, Reuters announced in August. Sources disclosed to CNBC that this has brought about a few moves in corporate promoting, with specific capacities unified in another gathering, and the end of some different positions.