2 Pros Discuss What Larry Culp Brings As CEO To General Electric

General Electric Company GE has a new CEO.

H. Lawrence Culp, Jr. will replace John Flannery, effective immediately. The executive shuffle helped boost GE's stock about 7 percent Monday as the company is now led by "one of the best" industrial executives, according to Bloomberg Intelligence's Joel Levington.

What To Know

Culp led Danaher Corporation from 2000 through 2014 and transformed the company from a small heavy duty truck manufacturer into a global diversified company, Levington said during "Bloomberg Daybreak." As a result, Danaher showed stability growth along with margin improvement and organic growth.

The executive's accomplishments are "exactly what GE wants" and his first order of business will be putting an end to "bad acquisitions" and overseeing operational improvements, Levington said.

GE's appointment of Culp should be appreciated by investors. It not only signals an end to Flannery's brief era as CEO, but offers an "injection of hope" into GE's stakeholders as it's a tremendous positive development. GE typically offers investors a glimpse into its future each December, so Culp has a couple of months ahead to put together a credible game plan before pitching to investors, Levington said.

Pressure From Analysts, Not Activists

GE's decision to replace Flannery with Culp may have been due to pressure from Wall Street analysts rather than pressure from notable activists and shareholders like Nelson Peltz, Jeff Sonnenfeld of Yale School of Management told CNBC.

Peltz and his Trian Fund Management bought a large stake in GE at an average price in the mid-$20s and endorsed "every move" that was made along the way. Instead, GE's board felt some pressure from analysts to make a leadership and it's a "shame" the company didn't appoint Culp 13 months ago when it named Flannery as CEO to avoid the current disruption, Sonnenfeld said.

Flannery remains a "very smart guy" and his removal is more a function of atmosphere as he's far from a "charismatic back slapping" executive, Sonnenfeld said, while Culp has more of a "personal dynamism" to his personality.

GE's stock closed Monday at $12.09 per share.

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