General Electric nominated top aviation and industrial executives and an accounting expert to its board on Monday, as it seeks to restructure its business and restore investors' confidence in one of the largest U.S. industrial conglomerates.
The Boston-based multinational, which racked up a $10 billion loss in the fourth quarter, was the worst-performing stock on the Dow Jones industrial average last year. It fell another 3.5 percent on Monday.
GE said on Friday that it was facing potential legal action by the U.S. Department of Justice in connection with subprime mortgages. It also said a restatement of its 2016 and 2017 results would likely lower reported earnings.
Those problems along with long-term care contracts, which resulted in a $6 billion charge on its insurance businesses last year, drew criticism from billionaire U.S. investor Warren Buffett in an interview on CNBC on Monday.
"I would say the accounting at GE has not been a model at all in recent years, but you can make mistakes," said Buffett, who exited his stake in GE last year.
"Long-term care has probably been the biggest single element of mis-reserving in insurance throughout the industry ... but I was staggered by the amount of it (at GE)."
One of the new directors named on Monday was Leslie Seidman, a former JPMorgan Vice President and chairman of the Financial Accounting Standards Board nicknamed "Loophole Leslie" by opponents for her bank-friendly approach to regulation after the 2008 financial crash.
The other two were Thomas Horton, who oversaw the restructuring and merger of American Airlines with US Airways, and Lawrence Culp Jr., who as former CEO of Danaher transformed the company from a manufacturer into a science and technology firm.