GE CEO would bring Uber stability
Immelt one of top choices to lead company
SAN FRANCISCO Uber’s search for a new chief executive to replace ousted co-founder Travis Kalanick echoes with one name: former General Electric CEO Jeff Immelt.
Crazy choice, or inspired?
The 61-year-old careerist announced in June plans to retire after 16 years at GE’s helm, staying on as chairman until Dec. 31. He was known as much for his overhaul of GE (GE) — shuttering stagnant business divisions and pushing a digital-first agenda — as he was for the company’s underperforming stock, which fell more than 10% as the market reached record levels this year, and lost 36% over his tenure.
But if reports are to be believed, the veteran of one the nation’s most storied corporations could be on tap to take over for Kalanick at a rule-busting tech start-up reeling from accusations of workplace sexism, lawsuits from rivals and feuding board members.
That idea makes business experts enthusiastic. They note Immelt could provide timely professional oversight for a company that has riled regulators and rivals as well as allies, from employees to contractors to tech partners, during its 8-year ascent.
“I think the sun and moon and the stars have lined up on this one,” says Jeffrey Cunningham, professor of leadership at Arizona State University’s Thunderbird School of Global Management.
With his knowledge of the public markets, Immelt would be a solid candidate to guide Uber through an initial public offering. And while a far cry from the tech wunderkinds Silicon Valley prides itself on minting, Immelt does bring some tech chops.
At the 125-year-old GE, manufacturer of everything from wind turbines to medical imaging equipment, Immelt launched a digital division and adopted start-up strategies, like empowering subordinates to own their divisions. Those moves inspired GE to take on the slogan “the digital industrial company.”
Immelt himself has referred to this experience recently, contributing a long piece to the September issue of the Harvard Business Review entitled “How I Remade GE,” that notes, “We were a classic conglomerate. Now people are calling us a 125-yearold start-up.”
With his Fortune 500 clout, Immelt may also counterbalance the influence of Kalanick, who still controls board seats and is supported by employees and investors who think his vision outweighs his leadership missteps.
“Uber’s issues are significant, but they pale in comparison to what Jeff dealt with at GE, which included 9/11, the 2008 financial crisis, unfriendly media,” says Cunningham. “He’s also the ‘Travis Killer.’ He’ll keep him in a cage because (Kalanick) will respect the big lion in town.”
Where Kalanick was known for sharp elbows and his “always be hustlin” mantra, Immelt mixes “sophisticated large system execution” with “a boyish spirit and enthusiasm,” says Yale School of Management’s Jeffrey Sonnenfeld. “He would bring a foundation of much needed personal trust, global sophistication and respect.”
Uber, GE and a representative for Kalanick declined to comment for this story. Uber representatives said the company has not issued an official deadline for announcing its new CEO, and would not comment on a late July report in Bloomberg that said Uber HR boss Liane Hornsey speculated a CEO would be announced within six weeks.
But experts say there’s a lot about an Immelt-Uber connection that makes sense. Some note that his international push at GE, whose overseas workforce jumped to 65% from 43% in 2001, could fit well with a ride-hailing company that is in 80 countries and whose visions of global domination recently hit roadblocks in places such as China and Russia.
Immelt also could help with Uber’s corporate governance and regulatory challenges, and perhaps take a strategic knife to costly business ventures to shore up the company’s financials.
Silicon Valley outsider
But many also are puzzled that Uber’s 14-member leadership team might seek out an executive at the end of his career who is not steeped in a Silicon Valley ethos.
“I like Jeff, but if I’m Uber and I’m sitting down with the recruiting firm (Heidrick & Struggles) to discuss my criteria, I don’t know how you come up with him,” says Michael Farr, CEO of investment management firm Farr, Miller and Washington.
“I want a 40-year-old Mark Zuckerberg type, someone who came in, hit it big, has an ethical reputation and is looking for the next big thing,” he says.
In fact, another rumored choice, former eBay CEO and current HPE chief executive Meg Whitman, would seem a more natural fit, as she would have brought strong tech world credentials. Her appointment might also help Uber reverse its reputation for sexism and an unchecked “bro” culture.
Whitman publicly pulled herself out of the running in late July, although Uber investor Benchmark Capital is still said to be pushing her candidacy, according to CNBC. HPE did not respond to a request for comment.
Immelt could also bring an organizational discipline that Kalanick didn’t seem to prioritize.
“He could say, ‘I’m now going to introduce the culture from GE, where we don’t seem to have the problems you have,’” says University of Maryland finance professor David Kass. “He obviously would have a lot to learn (about Uber), but I sense he’s the kind of leader who’ll surround himself with people who are more knowledgable than he is.”
For Immelt, a chance to write new exit line
That said, why bother? At nearly retirement age, Immelt could well be expected to head off on a mission to manage his portfolio. But one simple word would explain his taking on the Uber challenge, says investor Farr.
“Redemption,” he says. “You don’t get to where he did in life without being driven. And he doesn’t want to go out to the sound of criticism of his GE tenure.”
Georgetown University professor Jason Schloetzer, who specializes in CEO succession and corporate governance, says Immelt did not leave GE on his own terms and Uber represents a chance to leave the business world on top.
“Uber is a mess but also a unique opportunity to show your CEO prowess by bringing that company stability and focus,” he says. “The downside is dealing with a board that does not have a holistic vision for the company’s next step. ”
As for what Immelt’s own opinion might be on tackling Uber’s top position, the HBR article gave a pretty complete description.
“I led a team of 300,000 people for 6,000 days,” he wrote. “I led through recessions, bubbles and geopolitical risk. I saw at least three (random and unexpected) ‘black swan’ events. New competitors emerged, business models changed and we ushered in an entirely new way to invest. But we didn’t just persevere, we transformed the company.”