Culp, who joined GE's board of directors in April of 2018, was the former CEO of Danaher Corp from 2000-2014.
Culp is known as a specialist in turning companies around.
It came as the group told investors that chief executive Ian Read would step down at the start of next year, but become the executive chairman as at January 1. "I am excited to get to work".
GE shares jumped as much as 16 percent, but later pared some of the gains to trade up 9.5 percent at 11:30 a.m.in NY.
In addition to announcing Culp's ascension to the top spot, GE also said Monday that it may take a $23 billion goodwill impairment charge tied to its GE Power business and that it was going to miss its guidance targets.
A note from Briefing.com said Culp's appointment was promising, saying that he led "Danaher's transformation from an industrial manufacturer into a leading science and technology company". The company will provide additional commentary when it reports third quarter results.
Lawrence Culp Jr. will take over as chairman and CEO immediately. Nothing seemed to help, however, as the company's stock price waned throughout his tenure, decreasing more than 56% to a low of $11.21 last week. A strong credit rating is critical for GE's ability to provide financing for the sale of its big-ticket jet engines and gas turbines.
GE is the world's biggest maker of natural gas-fired turbines.
GE's stock had fallen more than 35% this year through Friday.
GE has endured a hard year in which it has lost more than half of its stock market value and been ejected from the Dow Jones Industrial Average after more than a century's membership. The average tenure for a CEO at the company, which was once renowned for grooming executives to run major corporations including Boeing, Home Depot and Honeywell, was almost 14 years prior to Flannery's swift exit.
"John Flannery is running the company", Peltz said flatly. Immelt took over from Welch two days before the terrorist attacks in NY and Washington on September 11, 2001.
A goodwill impairment charge is a write-off used to balance a company's books when the recorded value of an asset or liability is determined to be greater than the fair value, according to Investopedia. The company also shrank its board and pushed out a raft of directors who served under Immelt.
One of Culp's challenges will be to deal with GE's "long-cycle" businesses like power that defy easy fixes.
The broad strategies are likely to be similar because the plan laid out by Mr Flannery was made in conjunction with heavy involvement from the board, which included Mr Culp, said Gabelli & Co analyst Justin Bergner.