Jack Welch

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.