GE's New CEO Bets $2.7 Million He Can Revive the Stock

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.

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.

Write to Thomas Gryta at thomas.gryta@wsj.com

(END) Dow Jones Newswires

August 10, 2017 17:38 ET (21:38 GMT)