Jack Welch(1935-2020)
- Actor
Jack Welch was born to Irish-Catholic parents. He attended the
University of Massachusetts, graduating in 1957 with a B.S. in chemical
engineering. He later received his M.S. and Ph.D at the University of
Illinois in 1960. Welch joined General Electric in 1960 as a junior
engineer with a salary of $10,500. He moved up the ranks to become vice
president of GE in 1972 and vice chairman in 1979. Welch became GE's
youngest-ever chairman and CEO in 1981.
Welch gained a reputation as a brutal corporate leader. He shut down
factories, reduced payrolls, and cut lackluster old-line units. He was
dubbed "Neutron Jack" (in reference to the neutron bomb) for wiping out
the employees while leaving the buildings intact. Each year, Welch
would fire the bottom 10% of his managers. But he would also reward the
top 20% with bonuses and stock options, and expanded the stock options
program at GE to nearly one-third of all employees. Although he was
initially treated with contempt by his employees for his policies, they
eventually grew to respect him. Welch's strategy was later adopted by
other CEOs across corporate America. Welch is known for destroying the
nine-layer management hierarchy and bringing a sense of informality to
the company.
In 1986, GE acquired NBC, as well as hundreds of other companies. In
1999 he was named "Manager of the Century" by Fortune magazine. His
salary was a staggering $94 million a year, with a retirement plan of
$8 million a year. Welch led GE to massive revenues (nearly $130
billion in 2000). Through its strong earnings and future growth
estimates, GE was valued at $400 billion in 2004, making it the world's
largest corporation. Welch retired from GE in September 2001.
University of Massachusetts, graduating in 1957 with a B.S. in chemical
engineering. He later received his M.S. and Ph.D at the University of
Illinois in 1960. Welch joined General Electric in 1960 as a junior
engineer with a salary of $10,500. He moved up the ranks to become vice
president of GE in 1972 and vice chairman in 1979. Welch became GE's
youngest-ever chairman and CEO in 1981.
Welch gained a reputation as a brutal corporate leader. He shut down
factories, reduced payrolls, and cut lackluster old-line units. He was
dubbed "Neutron Jack" (in reference to the neutron bomb) for wiping out
the employees while leaving the buildings intact. Each year, Welch
would fire the bottom 10% of his managers. But he would also reward the
top 20% with bonuses and stock options, and expanded the stock options
program at GE to nearly one-third of all employees. Although he was
initially treated with contempt by his employees for his policies, they
eventually grew to respect him. Welch's strategy was later adopted by
other CEOs across corporate America. Welch is known for destroying the
nine-layer management hierarchy and bringing a sense of informality to
the company.
In 1986, GE acquired NBC, as well as hundreds of other companies. In
1999 he was named "Manager of the Century" by Fortune magazine. His
salary was a staggering $94 million a year, with a retirement plan of
$8 million a year. Welch led GE to massive revenues (nearly $130
billion in 2000). Through its strong earnings and future growth
estimates, GE was valued at $400 billion in 2004, making it the world's
largest corporation. Welch retired from GE in September 2001.