What will GE pay new CEO for turnaround?
General Electric will pay its new CEO, Larry Culp, up to $21 million a year for four years with the potential for hundreds of millions of dollars more per year – depending on how much investors buy into GE’s turnaround.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GE | GE AEROSPACE | 180.21 | -0.94 | -0.52% |
Culp’s compensation will include a base salary of $2.5 million per year, a target annual bonus of $3.75 million and annual equity awards of $15 million and other grants, based on his performance. The board has approved the agreement for four years, according to a securities filing.
If Culp turns GE around and investors start buying GE’s shares, then Culp could be rewarded handsomely from his equity awards.
Culp’s severance package is for $12.5 million, but it will only be paidif Culp is fired without cause or leaves with “good reason.” Generally, leaving under good reason is when someone resigns due to significant changes in their employment contract.
GE has yet to settle the terms of John Flannery’s departure. Flannery made $9 million last year. He was promoted to CEO midway through 2017. Jeff Immelt, the former CEO of GE who stepped down on Aug. 1, 2017, received $8.1 million in compensation in 2017, down from $21.3 million in 2016, according to Reuters.
The GE board appointed Thomas W. Horton, 57, to succeed Culp as lead director and chair.