General Electric Co.'s new boss, John Flannery, is betting on himself.
Mr. Flannery, who took over as chief executive this month, bought about $2.7 million worth of GE shares in his 401(k) retirement account this week, according to documents filed with the Securities and Exchange Commission.
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The purchase comes as GE's share price has dropped 19% in the last year, missing out on a broad stock market rally that has pushed the S&P 500 up 12% during that period. On Thursday, GE shares slipped 1.6% to $25.30.
Mr. Flannery, 55, who has held investment positions during his 30 years at the industrial conglomerate, now owns about 615,436 GE shares, worth about $15.6 million, according to the filing and based on the stock's closing price Thursday. A GE spokeswoman said he was unavailable for immediate comment.
There is a requirement at GE for the CEO to own company shares totaling 10 times his or her starting salary -- which, in Mr. Flannery's case, is $2 million, according to regulatory filings -- but Mr. Flannery has five years to reach that $20 million investment goal.
He also owns 101,000 restricted stock units and options to purchase about 2.6 million shares at prices ranging from $11.95 to $38.75.
Mr. Flannery, who formerly ran GE's health-care division, took the reins on Aug. 1 after Jeff Immelt retired after 16 years. Mr. Immelt remains chairman until year-end.
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(END) Dow Jones Newswires
August 10, 2017 17:38 ET (21:38 GMT)