The iconic American industrial conglomerate
General Electric
is breaking apart. Carving businesses out of a company whose roots stretch back to Thomas Edison and the 1870s isn’t easy. But the modern version of
GE
just reached another separation milestone.
On Tuesday, GE (ticker: GE) announced the boards of directors for GE’s power-generation business, called GE Vernova, and GE’s aviation business, dubbed GE Aerospace.
GE Vernova is due to be spun out in the second quarter of 2024. The company will host an analyst event on March 6, 2024, in New York City to provide investors with an overview of its business.
GE Healthcare Technologies
(GEHC) was spun out of GE at the beginning of 2023.
The GE Vernova board’s nonexecutive chairman will be Stephen Angel, former CEO of industrial gas maker
Linde
(LIN). Along with his leadership skills, he can bring experience in the areas of gas handling and hydrogen production.
Hydrogen is a key gas in the transition away from fossil fuels. In many scenarios, it can generate no carbon dioxide during its production or use. Carbon dioxide is the main gas blamed for global climate change. GE’s natural gas-fired power generation can burn a mix of hydrogen and natural gas today.
Along with Angel, there are executives with experience in infrastructure, utilities, energy production, and finance. Vernova CEO Scott Strazik is on the board as well.
GE CEO Larry Culp will serve as chairman of GE Aerospace’s board. Former
Airbus
(AIR.France) CEO Thomas Enders will serve on the board, as well as retired Air Force General Darren McDew. GE Aerospace’s board also includes experience in airlines, aviation, and finance.
Most of the current GE board of directors—including Stephen Angel,
Accor Hotels
CEO Sebastien Bazin, and former Trian Fund Management CIO Edward Garden—will serve on the Aerospace board. Two existing GE board members—PreferWest CEO Paula Rosput Reynolds and former
Shell
(SHEL) CFO Jessica Uhl—will move to the Vernova board.
GE stock isn’t reacting all that much to the management news. Shares are up 0.5% in midday trading on a strong day for markets. Inflation data came in better than expected, which had the
S&P 500
up about 2.1%, and the
Dow Jones Industrial Average
up about 1.6%.
GE-related stocks have had a strong year overall, though. Through midday trading Tuesday, GE stock has climbed 77% year to date. GE Healthcare shares are up about 23%.
Write to Al Root at [email protected]
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