General Electric on Monday formally named three executives, including longtime company official John Rice, to spearhead a turnaround effort for its struggling power business.
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Rice, the company’s former vice chairman who retired in 2017, will return as chairman of GE Gas Power to guide the division’s overall strategy. Longtime executive Scott Strazik will serve as CEO of GE Gas Power, replacing Russell Stokes, who will take over as CEO of GE Power Portfolio – a new business that includes the company’s steam, grid solutions, nuclear and power conversion efforts.
“One of my top priorities is positioning our businesses to win, starting with GE Power,” GE Chairman and CEO Lawrence Culp said in a statement. “The leaders we are announcing today are exceptionally well suited to lead our new Gas Power and Power Portfolio teams in their efforts to deliver better customer outcomes and improve their execution and cost structures. I am confident this is the right strategy and the right team to lead these businesses forward.”
The three executives will report to Culp. GE shares up more than 2 percent in midday trading.
Culp, who took over as CEO last September, restructured GE Power as part of overall cost-cutting measures. The company has struggled to adapt in recent years to systemic changes to the U.S. economy.
GE Power is the company’s largest business unit. The segment reported a $631 million loss and a $22 billion charge related to acquisitions in the third quarter.
Rice worked at GE for 39 years before his retirement after Jeff Immelt stepped down as CEO. He previously ran GE Energy from 2000 to 2005.
