Jeff Immelt, chairman and CEO of General Electric Company (NYSE:GE) announced that the company appointed a new executive to lead GE Capital, provider of business lending and leasing for companies in different industries.
Keith Sherin Will Be The CEO Effective July 1
According to Immelt, the company named Keith Sherin as chairman and CEO of GE Capital effective July 1. He will replace Mike Neal, who will be retiring after serving the company for 34 years. He will remain as vice chairman of GE until the end of 2013 to help with the transition.
“Mike has led Capital for six years with a steady hand, a deep knowledge of markets and a focus on delivering results for Capital and for GE,” said Immelt.
He added that retiring leader of GE Capital and his team helped in transforming GE Capital into a more focused and valuable business, which is significant for the future of General Electric Company (NYSE:GE). Immelt said, “We are all grateful to Mike for his many contributions to our company.”
Prior to his appointment as chairman and CEO of GE Capital, Sherin served as CFO of General Electric Company (NYSE:GE) for 14 years. He also served as vice chairman of the company since 2007. In addition, he served as member of the board of GE Capital for 14 years. Sherin was involved in the transformation of the company into a more focused financial services with strong earnings. He joined General Electric Company (NYSE:GE) in 1981. He became vice president and CFO of the company in 1998.
Immelt described Sherin as one of the respected CFO’s, a trusted colleague and a smart business partner. According to him, he played an integral role in defining the growth strategy of General Electric Company (NYSE:GE), implementing its compliance programs and delivering value to shareowners is his capacity as vice chairman.
“His deep understanding of Capital’s people and operations will make him a strong leader for this business. Keith’s appointment underscores the importance of GE Capital to GE,” said Immelt.
Immelt also announced GE Capital Jeff Borstein will take over the responsibilities of Sherin as CFO of the General Electric Company (NYSE:GE). “Jeff is well known and respected within the financial services industry and will be a terrific CFO, a position he has held at Capital for more than five years. He is a tough-minded leader with sharp analytical skills and a broad understanding of GE, having worked in many of our industrial businesses,” said Immelt.
The appointment of Sherin and Bornstein is not surprising for analysts. They believe that Sherin is a logical choice to lead GE Capital. According to them, General Electric Company (NYSE:GE) will not change its strategy and will continue its commitment to shrinking GE Capital into a $300 to $35 billion commercial lending & aircraft leasing core, with surplus capital return to a growth.