Welch's planned departure date, disclosed for the first time during an interview Monday evening on the GE-owned cable network CNBC, would come five months after his 65th birthday and nearly four months after December 31, 2000, the date through which his current contract requires him to stay in place.

That was the date GE watchers focused on. A GE spokeswoman said Welch always had the option to remain longer.

Setting a departure date for the first time should enable Welch to quell, at least for the time being, the growing din about his plans and the company's succession candidates. Despite Welch's tight-lipped approach and GE's carefully controlled succession process, speculation over the future heightened this year.

At 4 p.m. on the New York Stock Exchange, GE closed at $128.4375, down $1.0625. On Monday, GE shares fell 4.5% from an all-time high of $136.1875."One of the keys to the entire process is for him to keep his options open as long as possible and keep the competitive landscape going as the various candidates continue to prove themselves," said William T Fiala, an analyst at Edward Jones in St. Louis. "As far as I know, this could have been his plan all along... . He's pretty tight-lipped, but he clearly has a master game plan."

Welch also bought himself and GE's board even more time to evaluate his succession candidates. In his appearance on CNBC, Welch suggested his successor would be named in the second half of 2000, later than many expected. "We'll have a team in place sometime late next year to take care of this whole thing," Welch said. He declined to comment further Tuesday.

People close to GE, Fairfield, Conn, believe the leading contenders are Jeffrey R Immelt, head of GE's medical-systems unit, who is currently seen as the frontrunner; W James McNerney Jr, who runs GE's aircraft engines business; and Robert L Nardelli, chief of the company's power-systems business.

None commented on succession, and Welch hasn't discussed candidates publicly.Others pointed out Welch, who has been revelling in the company's recent success, is now able to enjoy another year or even slightly more at the helm before anointing a successor. "This is a reflection of the fact that 2000 is going to be a strong year for GE, and Jack would like to be on board to participate and celebrate in that," said Nick Heymann, an analyst at Prudential Securities.

The precise timing of Welch's departure and the identity of his successor have been continuing topics of speculation for GE insiders, investors and watchers for years. While management succession always is a tricky matter, in Welch GE must replace a business icon who has won enormous confidence from investors. Under Welch, who is only the eighth CEO in the history of the 107-year-old company, GE has become one of the fastest-growing and most profitable companies in the world, with a current market capitalization of $423.84 billion, second only to that of Microsoft Corp. The succession race is coming during an unusually hectic time, as GE races to embrace the Internet across its disparate units and maintain the surging earnings growth of recent quarters.

It has been a tradition at GE for the CEO to step down a little ahead of schedule. One of the beneficiaries of this tradition was Welch himself, who assumed the mantle at GE when his predecessor, Reg Jones, stepped down at age 63 in 1981. Welch's departure will coincide with his 20th anniversary at the helm of GE.

The Wall Street Journal