September 13 1998
BUSINESS NEWS / THE SUNDAY TIMES
GE Capital boss ready to
quit
Kirstie Hamilton, City Editor
GARY WENDT, one of the best-known and most
successful American business executives, is believed to
be close to quitting GE Capital, the world's largest
non-bank financial-services group.
Speculation that an announcement of his departure may
be imminent is rife at GE Capital, one of the largest
divisions of General Electric. If Wendt was to resign, it
would signal the break-up of one of the most successful
double acts in American industry. Wendt and his boss,
Jack Welch, GE chairman, together created one of the
most admired corporations in America. Welch is due to
retire in less than two years and senior executives have
said the company is determined to allow a decent interval
between the two departures.
A GE Capital spokesman refused to comment on Wendt's
plans, but pointed to a recent interview in which Wendt
dismissed any suggestion that he was about to retire.
Wendt's personal life has made him even better known.
His wife, Lorna, won $20m in their divorce settlement last
year after 30 years of marriage.
GE Capital has been one of the fastest-growing areas of
GE, consistently bringing in double-digit earnings growth.
In Europe it has been one of the most acquisitive
financial-services groups, acquiring hundreds of
operations in Europe. It has begun to focus on Asia,
acquiring a consumer finance group in Japan and buying
up $1 billion of Thai debt.
Wendt, 56, is thought to have negotiated a lucrative
three-year contract with Welch early this year, but few
within the organisation believe he will remain for the full
term.
GE's profits climbed by 14% in the last quarter, with GE
Capital recording a 17% rise to $881m, 47% of the total.
|
