Best-of: William Cohan on GE’s Legacy

This podcast episode explores the complexities of CEO succession at Disney, General Electric, and NBCUniversal. It examines the psychological challenges faced by CEOs in choosing successors who may outperform them and the importance of finding a successor who aligns with the company's culture and values. The episode also delves into the intricate legacy of Jack Welch, examining his paradoxical traits and his remarkable contributions to General Electric. The discussion highlights his strong-handed leadership style, his commitment to his employees, and his ability to consistently meet earnings estimates. It also examines the use of GE Capital as a tool to achieve these results, leading to its subsequent challenges. The episode also explores Jeff Immelt's subsequent leadership of the company, including his handling of the 9/11 attacks, the financial crisis, and his unpopular decision to sell NBCUniversal. It concludes with an analysis of the key decisions that contributed to General Electric's demise, including the sale of NBCU, the acquisition of Alstom, and the involvement of activist hedge fund Nelson Peltz.