GE reshapes board after retroactively cutting profits

February 26, 2018 - 7:25 am

BOSTON (AP) — Days after revealing that it must restate two years of earnings, General Electric Co. is reshaping its board of directors.

GE said Friday that it must retroactively cut its 2016 per-share earnings by 13 cents, and by 16 cents for 2017. It's adopting new accounting standards for 2018 with the Securities and Exchange Commission investigating the company over long-term service contracts.

The Boston company is also being investigated by federal regulators for a $15 billion miscalculation made within an insurance unit.

After cutting the size of its board from 18 to 12, General Electric Co. said Monday that a quarter of that board would consist of new members, including Danaher Corp. CEO Lawrence Culp, American Airlines CEO Thomas Horton and Leslie Seidman, former chairman of the Financial Accounting Standards Board.

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