GE's CEO Change at Its Cash Cow Is Surprising But Smart
The coronavirus upheaval makes it an odd moment to replace the longtime head of GE's aviation unit, but the company can only benefit from fresh eyes.
Veteran aviation executive John Slattery brigs a wealth of experience to a challenging role.
Photographer: SeongJoon Cho/BloombergA pandemic that’s reduced air travel to a trickle makes for an unusual time to replace the head of one of the world’s biggest jet-engine makers, but that’s exactly what General Electric Co. is doing. The industrial giant announced Monday that David Joyce, the long-time CEO of its aviation unit, was stepping down and would be replaced by John Slattery, head of commercial aviation at Brazilian planemaker Embraer SA.
“There’s never an ideal time for a transition like this, but I think the combination of where the business is in terms of the progress they’ve made in terms of getting their arms around all things Covid-related and, in turn, our view that John is simply an excellent candidate to replace the very big shoes that David will leave behind, came together at this moment,” GE CEO Larry Culp told me in a phone interview Monday after the news was announced. It also helps that Slattery’s former company Embraer failed to complete a planned joint venture with Boeing Co. after the buyer backed out earlier this year. Slattery was “somebody we’ve had our eyes on,” Culp said, “He clearly would have had a big role in all likelihood at Boeing with the venture if that had played out. But it didn’t. And here we are.”