GE Names NBC President Vice Chairman
General Electric Co. on Friday named NBC President Bob Wright as vice chairman, another step in the company’s succession planning as Chairman John F. Welch prepares to retire in April.
Wright, 57, isn’t seen by investors and analysts as a front-runner to replace Welch. He’ll take the spot of John Opie, who retired in April, while remaining head of NBC. The customary three-person office includes Welch and GE Capital Chairman Dennis Dammerman, who was formerly the chief financial officer.
Welch has told analysts and investors that he expects the top candidates who don’t get his job to leave the company.
Jeffrey Immelt, chief executive of GE Medical Systems; James McNerney, who heads GE Aircraft Engines; and Robert Nardelli, who leads GE Power Systems, are seen as the contenders. The addition of Wright to the front office adds a mentor and provides continuity and media expertise to whomever is named, analysts said.
“Given the expectation that the runners-up will probably look for other things outside the firm, it makes sense to put someone with Wright’s experience and stature in that role,” said Salomon Smith Barney analyst Jeffrey Sprague, who has a “buy” rating on General Electric.
Wright is the longest-serving network president in history, starting in 1986, the company said. He has overseen the expansion of NBC both geographically and beyond conventional broadcast networks into media businesses such as satellite, Internet and cable.
The expansion includes the formation of cable stations CNBC and the company’s joint venture with Microsoft Corp., MSNBC. Also formed was NBCi, a merger of NBC’s online holdings with online marketer Xoom.com and Web directory Snap.com. He also broadened NBC’s station ownership to 13. His appointment comes as the company emphasizes using the Internet in all its units.
“Bob’s a visionary with a great, strategic mind,” Welch said. “He’s a strong business leader with outstanding people skills.” Wright will be a “key force in driving the company’s strategic growth.”
The promotion is the latest move in succession planning at General Electric, the world’s biggest company by market value. In June, the company promoted three executives to chief operating officer roles at its aircraft engine, medical systems and power systems units. Analysts and investors said those moves were made to prepare for possible departures after a successor is named.
In November, Welch will turn 65, the company’s mandatory retirement age. He hasn’t named his top candidates or offered a schedule for the announcement. Analysts and investors have speculated an announcement will be made at the end of the third quarter or early in the fourth.
Wright joined General Electric in 1969 as a staff lawyer and held various positions in the company’s plastics and financial divisions before being named head of NBC. He left the company in 1980 to become president of Cox Cable Communications, returning in 1983 to head housewares and audio divisions.
Shares of Fairfield, Conn.-based General Electric closed off $1.56 at $50.94 on the New York Stock Exchange.
