“GE’s stock has dropped nearly 80% since Immelt took over.”
Maybe I just no longer understand how business works. If a stock drops 80% the board fires the guy in charge. If the board refuses to do it, the shareholders fire the board.
Are the large stockholders of GE just sitting around saying “Oh yea, we’re losing money and we’re so happy about it”? If I was in charge of a fund that had invested in GE stock I’d be calling for heads.
Immelt’s supporters control enough stock to keep him in power. The board is on his side. How can that happen? The board can get pay and perks that make loyalty pay. It isn’t right but that is how it works.