General Electric ends 126-year culture, axes top-executive bonuses in 2017

Marco Green
March 13, 2018

Former CEO Jeff Immelt received USD8.1 million in total compensation past year, down from USD21.3 million in 2016. Flannery earned USD1.6 million in salary in 2016 when he was CEO of the GE Healthcare division.

"The a year ago has been a hard one for GE's shareowners, and no one is more disappointed in our results than" the board, Jack Brennan, GE's lead director, said in the filing.

The remaining US$3mln or so of the 62-year-old's compensation reflected a change in the value of his pension and deferred compensation.

The company disclosed on Monday that in February it awarded 800,000 performance share units to the new CEO that will vest in three years.

Flannery, who officially came on board in August, immediately slashed the dividend, replaced several top managers and announced a series of "painful cuts" as he tried to get to grips with cash-flow shortfalls and flagging demand for GE's gas turbines and other industrial equipment.

In a rare move, GE says that its top leaders will not get bonuses after the company's bad year.

The exception was David Joyce, head of GE's aviation business, who received about $5.2 million. That included a pension of roughly $84 million and about $10 million in deferred compensation.

The company added that they would not change the remuneration for members of the Board, who earn 275,000 Dollars per year.

The new CEO made changes to GE's executive-compensation programs to improve accountability and better align pay with investor priorities.

But the 55-year-old, along with all but one of his fellow executives, won't be taking home a bonus this time around.

Immelt, who stood down from his role as chief executive in August and from the board two months later, received US$2.86mln in salary during 2017, plus nearly US$2mln in perks - mostly relocation benefits. Former vice chairs Beth Comstock and John Rice, who also left the company in recent months, received $9.03 million and $7.88 million, respectively.

Other reports by Click Lancashire

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