New boss for significantly slimmed-down GE Capital

Richard Laxer, GE Capital International president and CEO, will lead GE Capital with effect from September 1, 2016 as president and CEO.

Keith S. Sherin, GE vice chairman and GE Capital chairman and CEO, will retire from GE effective December 31, 2016.

Keith Sherin, 57, led the dramatic transformation of GE Capital into a smaller, more focused company after a career in business leadership positions across GE, including 15 years as GE chief financial officer.

Prior to his current role, Laxer (55) was president and CEO of GE Capital Europe, Middle East and Africa with operations in 19 countries. Before that, he was president and CEO of GE Corporate Financial Services, and from 2006 to 2008, he was president and CEO of GE Capital Solutions, a global leasing and asset provider with operations in more than 30 countries. From 1991 to 2003, he held leadership roles of increasing responsibility at GE Capital Real Estate, concluding with running the Asia Pacific region.

Laxer was named a company officer in 2003 and is a member of GE’s Corporate Executive Council.

He began his career at GE in 1984 as a member of the Financial Management Program (FMP) and served in a variety of sales and management positions.

He graduated from Skidmore College with a degree in business and is a trustee emeritus.

Laxer is also a member of the Friends of the President’s Council and on the board of Mubadala GE Capital PJSC. He is also an active member of the 30% club, a group committed to bringing more diversity into UK Boards.

GE Capital going forward will consist of three global businesses, GE Capital Aviation Services (GECAS), GE Energy Financial Services and GE Industrial Finance, all of which support the growth of GE’s industrial businesses and customers.

GE has been slowly selling off its media, financial and appliances assets and doubling down on its industrial manufacturing business in an effort to simplify and boost the stock price.

The financial side of the business has been weighing on the stock due to risks in the business exposed during the financial crisis, as well as the greater regulatory burden it has carried since the mortgage meltdown.

As part of the exit, GE will seek to get rid of GE Capital’s designation as a Systemically Important Financial Institution (SIFI), a title that places it under enhanced government scrutiny.

In addition to real estate, GE will also sell the bulk of its commercial lending business, its leasing segment and all consumer platforms, including all US and international banking assets.

The new GE will focus on energy manufacturing, including deep-water oil-drilling equipment; power-generation and water technologies, and its aviation business, which makes military and commercial engines, the company said.

GE will also retain its health care business, including data management.