GE’s Board of Directors should dismiss CEO Jeff Immelt, says the Free Enterprise Action Fund (Ticker: FEAOX); Immelt’s support for economy killing global warming legislation being debated in Senate is last straw, Fund says
For more info contact: Steve Milloy, 301-258-2852, steve@feafund.com
Washington DC, June 3, 2008 - 2008 - The board of directors of the General Electric Company should immediately dismiss Chairman and CEO Jeff Immelt says Action Fund Management, the investment adviser to the Free Enterprise Action Fund (Ticker: FEAOX), a publicly-traded mutual fund.
AFM urges GE’s board to take immediate action because after years of failing to improve the company’s stock price, Immelt’s latest blunder – support of global warming legislation S. 3036 that is being debated in the U.S. Senate – will lead to a massive growth in government and a loss in individual liberty. The Wall Street Journal described the legislation as “the most extensive government reorganization of the American economy since the 1930s.” In addition, numerous studies have reported the legislation will lead to higher energy prices and reduced economic growth.
AFM adds the following reasons to justify Immelt’s dismissal:
- GE’s stock price is lower today than it was when Immelt became Chairman and CEO in 2001;
- Immelt shocked Wall Street with disappointing first quarter earnings and lowered its outlook for earnings in 2008 – earlier in the year he told investors GE “revenues still look to be on track for 10% to 15% growth;” and
- GE continues to do business with Iran, a state sponsor of terrorism. “By lobbying for global warming and against his own earnings, and by doing business with a state sponsor of terrorism, we view Immelt as a ‘Benedict Arnold’ CEO,” said Tom Borelli of AFM. “GE’s board needs to act and act now” added Borelli.
“Immelt’s support of global warming regulations is a desperate attempt to use the force of government to sell GE’s products like wind turbines. However, this strategy will backfire when GE feels the affect of the negative economic impact of the legislation” said Steve Milloy of AFM. “Real business leaders don’t need government’s helping hand to profit. Immelt’s mismanagement of GE has gone long enough – it’s time for the board to show leadership and find a new leader.”
The FEAOX owns approximately 9606 shares of GE stock.
By investing in the FEAOX (http://www.FEAOX.com), individuals can participate in the global warming debate while having an opportunity to earn a financial return through ownership of a large-cap mutual fund. With a minimum investment of $2,500, individuals can join FEAOX’s effort to make CEOs justify their positions on global warming. FEAOX is available exclusively through Northern Lights Distributors LLC, (applications may be obtained at http://www.FEAOX.com/how.html), and through E*Trade Financial, Scottrade, TD Ameritrade and HSBC.
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