Jack Welch

From Wikipedia, the free encyclopedia

Jump to: navigation, search For other people named Jack Welch, see Jack Welch (disambiguation).

Dr. John Francis Welch, Jr.
November 19, 1935 (age 74) Peabody, Massachusetts

Born

Occupation

Management expert, CEO, author

Spouse(s)

Carolyn Welch, Jane Welch, Suzy Welch

John Francis "Jack" Welch, Jr. (born November 19, 1935) is an American businessman and author. He was Chairman and CEO of General Electric between 1981 and 2001. Welch's net worth is estimated at $720 million.[1]

Contents
[hide]
y y y y y y y y

1 Early life and career 2 Tenure as CEO of GE 3 Criticism 4 Personal life 5 See also 6 References 7 Further reading 8 External links o 8.1 Official o 8.2 Articles o 8.3 Videos

[edit] Early life and career
Jack Welch was born in Salem, Massachusetts to John, a Boston & Maine Railroad conductor, and Grace, a homemaker.

Welch gave him his answer. he blew off the roof of the factory.. . and Ph. or else leave it completely. reduced payrolls and cut lackluster old-line units." Gutoff said.´[5] He also pushed the managers of the businesses he kept to become more productive. "To try to keep you here is important. a young executive two levels higher than Welch. He took Welch and his first wife Carolyn out to dinner at the Yellow Aster in Pittsfield.000 raise he was offered after his first year.S. "But then he said to me--and this is vintage Jack--'I'm still going to have the party because I like parties.. [6] Welch's public philosophy was that a company should be either #1 or #2 in a particular industry. Welch worked to eradicate perceived inefficiency by trimming inventories and dismantling the bureaucracy that had almost led him to leave GE in the past. in an interview with the Financial Times on the Global financial crisis of 2008±2009.[4] This is often acknowledged as the "dawn" of the obsession with shareholder value. Welch went on to receive his M. [edit] Tenure as CEO of GE Through the 1980s. "As long as I am here. not a strategy.500 annually. Jones. and was almost fired for doing so. Illinois." Gutoff remembers pleading. While at GE. Massachusetts. He moved up the ranks to become senior vice president in 1977 and vice chairman in 1979. Later. By 1982. succeeding Reginald H. Welch said. Welch joined General Electric in 1960. and besides. Reuben Gutoff. graduating in 1957 with a Bachelor of Science degree in chemical engineering. Gutoff vowed to work to change the bureaucracy to create a small-company environment. you are on trial.[2] Welch was displeased with the $1. as well as the strict bureaucracy within GE. shareholder value is the dumbest idea in the world.'" Some 12 years later. He worked as a junior engineer in Pittsfield. While at UMass he was a member of the Alpha chapter of the Phi Sigma Kappa fraternity. Welch became GE's youngest chairman and CEO in 1981. Welch had disassembled much of the earlier management put together by Jones. "Trust me. Welch worked to streamline GE." recalls Gutoff. you are going to get a shot to operate with the best of the big company and the worst part of it pushed aside. and spent four hours trying to convince Welch to stay. He shut down factories. Welch's strategy was later adopted by other CEOs across corporate America.[3] Welch was named a vice president of GE in 1972. ³On the face of it. Welch would audaciously write in his annual performance review that his long-term goal was to become CEO. Shareholder value is a result.Welch attended Salem High School and later the University of Massachusetts Amherst.D at the University of Illinois at UrbanaChampaign in 1960." "Well. "I'm glad to be on trial. your customers and your products." retorted Welch. He planned to leave the company to work with International Minerals & Chemicals in Skokie. I think they have some little presents for me. your main constituencies are your employees. In 1981 he made a speech in New York City called "Growing fast in a slow-growth economy"." At daybreak. at a salary of $10. "It was one of my better marketing jobs in life. decided that the man was too valuable a resource for the company to lose.

while McNerney became CEO of 3M until he left that post to serve in the same capacity at Boeing. In 1986. Welch would fire the bottom 10% of his managers.000 were reduced in continuing businesses. Wendt. GE recorded revenues of roughly $26. He earned a reputation for brutal candor in his meetings with executives. At the time of his retirement. In 1980. He would push his managers to perform. with Immelt eventually selected to succeed him as Chairman and CEO. Welch received a salary of $4 million a year. They contend that individual managers are largely responsible for the company's success. When . and 81. Nardelli became the CEO of Home Depot until his resignation in early 2007.000 who left the payroll. Of the 112. under Gary C. [edit] Criticism Some industry analysts claim that Welch is given too much credit for GE's success. It is also held that Welch did not rescue GE from great losses as the company had 16% annual earnings growth during the tenure of his predecessor. Reginald H. In Jack: Straight From The Gut. making it the most valuable and largest company in the world. Welch has publicly stated that he is not concerned with the discrepancy between the salaries of top-paid CEOs and those of average workers. or to the humiliating Kidder. contributed nearly 40% of the company's total earnings while NBC and Robert C. the year before Welch became CEO. In 2000.000 at the end of 1985. In return. During the 1990s. and 299. Welch is also known for destroying the nine-layer management hierarchy and bringing a sense of informality to the company. GE had increased its market capital tremendously. GE acquired NBC.[7] There was a lengthy and well-publicized succession planning saga prior to his retirement between James McNerney. followed by his controversial retirement plan of $8 million a year. bond-trading scheme of the early 1990s that generated bogus profits". Robert Nardelli. Welch shifted GE business from manufacturing to financial services through numerous acquisitions. was the CEO of Chrysler.000 employees at the end of 1980. possibly contributing to some of the defense-contracting scandals that have plagued GE. but he would reward those in the top 20% with bonuses and stock options. In 1999 he was named "Manager of the Century" by Fortune magazine. the revenues increased to nearly $130 billion.[3] Welch has also received criticism over the years for an apparent lack of compassion for the middle class and working class.Each year. During the early 1980s he was dubbed "Neutron Jack" (in reference to the neutron bomb) for eliminating employees while leaving buildings intact. Critics also say that "the pressure Welch imposes leads some employees to cut corners. and until recently.[8] For example GE Capital. Welch adopted Motorola's Six Sigma quality program in late 1995. which was located in Rockefeller Center. 37. Welch states that GE had 411. Wright worked to turn the network around.8 billion.000 were in sold businesses. Jones. the company had gone from a market value of $14 billion to one of more than $410 billion at the end of 2004. He also expanded the broadness of the stock options program at GE from just top executives to nearly one third of all employees. When Jack Welch left GE. Welch subsequently took up an office in the GE Building at 30 Rockefeller Plaza. Peabody & Co. the year before he left. and Jeffrey Immelt. leading to five years of double-digit earnings growth.

However. In the episode. [12] Since September 2006. without interference from government or other outside agencies. Sankaty Head Golf Club.[13] He is also a global warming skeptic. and that. surprisingly. in Winning. international travel. Carolyn. he has picked up his golf game. He returned to work full time in September of the same year and also adopted an exercise schedule that included golf. He acknowledges using his time formerly spent on the golf course to consult with companies and indulge other personal interests such as modern art. which will be known as the "John F. They divorced amicably in April 1987 after 28 years of marriage. Welch appeared as himself in the fourteenth episode of the fourth season of the hit NBC sitcom 30 Rock. Beasley insisted on a ten-year time limit to its applicability. Jane Beasley.because the world wants these products. who co-authored his 2005 book Winning as Suzy Welch. and thus she was able to leave the marriage with an amount believed to be in the range of $180 million. Since then. While Welch had crafted a prenuptial agreement. On January 25. Welch underwent triple bypass surgery in May 1995.asked about the issue of excessive CEO pay. and the Country Club of Fairfield. Welch gave his name to Sacred Heart University's College of Business. and they divorced in 2003. playing at courses such as Nantucket Golf Club.[14] Yet he has said that every business must embrace green products and green ways of doing business. Welch has stated that such allegations are "outrageous" and has vehemently opposed proposed SEC regulations affecting executive compensation. "whether you believe in global warming or not. he doesn't miss it. golden parachutes for nonperformance. he governed the sale of NBC Universal to a . Welch has been teaching a class at the MIT Sloan School of Management to a hand-picked group of 30 MBA students with a demonstrated career interest in leadership. [11] The third wife of Jack Welch is Suzy Wetlaufer. Classes are offered both online and at the school¶s Cleveland campus.[9] In addition. She married Jack in April 1989. among others.. Welch is a member of Augusta National Golf Club. teaching and attending Red Sox games. Welch stated that CEO compensation should continue to be dictated by the free market. Welch College of Business".. Wetlaufer served briefly as the editor-in-chief of the Harvard Business Review before being forced to resign in early 2002 after admitting to having been involved in an affair with Welch while preparing an interview with him for the magazine. CT. 2006. The institute offers a MBA program based on Welch's management philosophy. and extravagant retirement packages). Welch is a vocal opponent of the Sarbanes-Oxley Act of 2002. 2010. Welch acknowledges that back problems forced him to give up playing golf." [15] Thanks to a donation from Jack Welch the Jack Welch Management Institute at the Chancellor University in Ohio was founded in July 2009.[16] On March 11. He had four children with his first wife. Countering the public uproar over excessive executive pay (including backdating stock options. was a former mergers-and-acquisitions lawyer. His second wife.[10] [edit] Personal life Welch has had a slight stutter since childhood.

[edit] See also . a parody of the actual acquisition of NBC Universal from General Electric by Comcast in November 2009. Kabletown.fictional Philadelphia-based cable company.

Sign up to vote on this title
UsefulNot useful