Jeff Immelt took the helm of GE from famed CEO Jack Welch in 2001.
At the time, the multinational conglomerate was experiencing the height of success. But 16 years later, when Immelt retired, that wasn’t the case.
GE’s stock fell so far it was kicked off the Dow Jones, and the company’s financial problems resulted in many divestitures and writedowns.
The plummet was so immense that, even though Immelt has been retired since 2017, shareholders still want answers.
At their urging, an independent investigation was launched to determine whether there was a legal basis to attempt to “claw back” some of the former CEO’s compensation.
The investigation, says GE, did not unveil actionable misconduct, bad faith or efforts to conceal information by its former CEO.
Immelt’s missteps were blamed for the 76% stock plunge that forced the company to dismantle, but GE says there is “no sound legal basis” to try to seize compensation.
Immelt has been paid around $168 million by GE since 2006.