Culp joined the GE board in April. GE is hoping he will continue the process of shedding non-performing assets and deleveraging the company's balance sheet. GE bosses have typically enjoyed long-term tenures spanning more than a decade. "I am excited to get to work", Mr Culp said.
GE now expects to miss its 2018 earnings forecast and take an impairment charge for nearly all of the US$23 billion of goodwill associated with its power segment. As such, the company expects to take a non-cash goodwill impairment charge related to the GE Power business of about $23 billion.
In a statement, Culp called his new position a "privilege" and said that he plans to "move with urgency" to address the company's woes. The company will provide additional commentary when it reports third quarter results.
Flannery on the same day said that GE might take the radical step of splitting up the main company's three main components - aviation, health care and power - into separate businesses.
GE has been hammered by the market.
GE is the world's biggest maker of natural gas-fired turbines. Shares had fallen 39 percent this year and hit a one-year low last week.
However, in Flannery's short time, GE's value has dipped below $100 billion and shares are down more than 35 percent this year, following a 45 percent decline in 2017.
Apple became the first US-based company to reach $1 trillion in valuation in August, according to CNBC. Immelt took over from Welch two days before the terrorist attacks in NY and Washington on September 11, 2001. Wall Street analysts applauded the move, but noted that GE's troubles are not "easily or quickly fixable". The company said that the goodwill impairment charge is likely to constitute all of this balance.
The power generation business has been particularly weak in recent years, due in part to the growth of renewable energy sources that has dented demand for GE's turbines. But investors seemed unimpressed, and the stock kept falling even as US markets notched records.
In June, GE lost its spot in the blue-chip Dow Jones Industrial Average after over a century. Flannery announced his resignation today. It even dumped the lighting business tied to the company's iconic founder, Thomas Edison.
Culp served as chief executive officer and president of Danaher Corporation from 2000 to 2014.
That industry publication honor may provide a measure of solace as GE Power employees contemplate a newly tumultuous future. Immelt remained on as chairman through his retirement at the end of 2017, after which Flannery assumed that role as well. In the release, the company said that the change in management will be effective immediately.
GE has famously paid a dividend every year since the Great Depression. Capital allocation can include decisions like stock buybacks, acquisitions, and research and development spending.