During my career in corporate America I remember running into the senior executives who ruled by the Welch principles-they all seem disconnected from reality, firing their bottom 10% of their rated employees and outsourcing the most critical work to India or Bulgaria. Here is clip from Gelles at the NYT who just wrote a book on this brute:
Almost immediately after Mr. Welch retired in September 2001 with a $417 million severance package, G.E. went into a tailspin from which it would never recover.
His pupils, though, went on to run dozens of other major companies, including Home Depot, Albertson’s, Chrysler and Boeing. Most of them failed.
And in the decades since Mr. Welch assumed power, the economy at large has come to resemble his skewed priorities. Wages stagnated and jobs moved overseas. C.E.O. pay went stratospheric and buybacks and dividends boomed. Factories closed and companies found ways to pay fewer taxes.
Beyond his enduring influence on the economy, Mr. Welch also redefined what it meant to be a boss, personifying an aggressive, materialistic style of management that endures to this day.
“Jack was the rock star C.E.O. of my era,” said Lynn Forester de Rothschild, one of the rare female media moguls of the 1980s. “We all thought Jack was doing everything right and that success was defined by meeting quarterly earnings to the penny.”
In retirement, Mr. Welch continued to hold sway over the business world as an elder statesman, penning books and columns, and appearing on cable news to praise the executives he had groomed and continue his assault on taxation and regulation.
Mr. Welch also pursued an unexpected retirement pastime: He became an internet troll. His old friend Donald J. Trump seemed to lead the way on many conspiracy theories that Mr. Welch embraced. But by 2012, Mr. Welch was picking fights of his own with his online adversaries, trying to own the libs on Twitter and promulgating conspiracy theories about the Obama administration.
It was a career defined by a ruthless devotion to maximizing short-term profits at any cost, and punctuated by a foray into misinformation. And it opened the door to an era where billionaire C.E.O.s are endowed with vast power and near total impunity.
G.E., too, is still reckoning with Mr. Welch’s legacy. For two decades after he retired, a succession of C.E.O.s tried and failed to return the company to its former glory. Then last year, G.E. management admitted defeat and made an announcement — the company would be broken up for good.
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