Empregados em opções de estoque ge

Opções de ações da GE ou patrimônio líquido.
21 funcionários relataram esse benefício.
Comentários dos empregados.
Geralmente pobre, principalmente oferecido a um preço mais elevado.
Muito boa política excelente. Não é necessária nenhuma alteração.
alguém pode comprar ações, a empresa também contribui para compartilhar a compra.
Trabalhar na GE? Compartilhe suas experiências.
Estrela Muito Insatisfeito Estrela Insatisfeito Estrela Neutra (& # 034; OK & # 034;) Star Satisfied Star Muito Satisfeito.
Atualizações da empresa.
Pesquisa de emprego relacionada Anterior Próximo.
Sua resposta será removida da revisão & ndash; isto não pode ser desfeito.

Cadeia de opções da companhia geral elétrica (GE).
Exibições da Lista de Símbolos.
Detalhes da ação.
NOTÍCIAS DA COMPANHIA.
ANÁLISE DE ACÇÃO.
FUNDAMENTOS.
Editar lista de símbolos.
Insira até 25 símbolos separados por vírgulas ou espaços na caixa de texto abaixo. Estes símbolos estarão disponíveis durante a sessão para uso nas páginas aplicáveis.
Não conhece o símbolo do estoque? Use a ferramenta de Pesquisa de Símbolos.
Alfabetizar a ordem de classificação dos meus símbolos.
Pesquisa de Símbolos.
Investir ficou mais fácil e # 8230;
Inscreva-se agora para se tornar um membro NASDAQ e começar a receber notificações instantâneas quando ocorrem eventos-chave que afetam os estoques que você segue.
As opções de chamada e colocação são citadas em uma tabela chamada de folha de corrente. A folha de corrente mostra o preço, o volume e o interesse aberto para cada preço de exercício da opção e mês de vencimento.
Editar favoritos.
Insira até 25 símbolos separados por vírgulas ou espaços na caixa de texto abaixo. Estes símbolos estarão disponíveis durante a sessão para uso nas páginas aplicáveis.
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Benefícios da GE.
Revisões de benefícios do empregado.
& ldquo; 401K está ok. 50% correspondem a contribuição de até 7%. Administrado pela Fidelity e tem boas opções de investimentos. & Rdquo;
& ldquo; GE passou a licença permissiva. Espero que você tenha um recurso de backup para ajudar o & rdquo;
& ldquo; Os benefícios diminuíram um pouco nos últimos 5 anos & rdquo;
Benefícios abrangentes cobrem a maioria dos itens, como health vac denentist ins etc. help with matrícula. O plano 401k tem o valor da partida da empresa.
O melhor é a cobertura do seguro familiar.
O cuidado preventivo é coberto por isso é ótimo. Em geral, os benefícios são muito bons, embora sejam mais caros do que tarde.
Após 50 anos GE corresponde a 401k a 8%
O seguro médico não é o melhor, mas pelo menos é somenthing.
Ao longo dos anos, o pacote de benefícios diminuiu. Os empregados pagam muito mais agora do que 5 anos atrás.
os benefícios costumavam ser bons, mas foram significativamente reduzidos, especialmente a cobertura de cuidados de saúde.
Permissive leave options é uma das melhores coisas, a partida 401k também está bem. O prémio de seguro de saúde está no topo.
Se você chegou no início, um plano de pensão estava disponível. Eles mudaram o pacote em 2018 para que mais dinheiro esteja saindo do seu bolso e se você tiver um cônjuge que esteja trabalhando, mas recusou o seguro do empregador para estar na GE, você tem que pagar extra.
O melhor é que eles tenham um conjunto completo de benefícios para escolher, mas as contratações recentes já não recebem uma pensão. Também a cada ano os benefícios custam mais por menos cobertura e maiores franquias enquanto você não obtém aumentos de salário.
Anterior 1 2 3 4 5 Próximo.
Resumo de Benefícios.
Lista com base em relatórios de funcionários atuais e anteriores. Pode não estar completo.
Seguro, Saúde e Bem estar.
Checkmark Health Insurance (459) Checkmark Dental Insurance (125) Checkmark Flexible Spending Account (FSA) (121) Checkmark Vision Insurance (126) Checkmark Health Savings Account (HSA) (122) Checkmark Life Insurance (120) Checkmark Supplemental Life Insurance (118 ) Checkmark Seguro de invalidez (123) Checkmark Seguro de acidentes profissionais (115) Checkmark Health Care On-Site (67) Checkmark Mental Health Care (114) Checkmark Retiree Health & amp; Médico (81) Checkmark Accidental Death & amp; Seguro de desmembramento (122)
Financial & amp; Aposentadoria.
Checkmark Plano de pensão (63) Checkmark Plano 401K (460) Checkmark Plano de aposentadoria (408) Checkmark Plano de compra de ações do empregado (81) Bônus de desempenho Opções de ações Plano de incentivo de ações Checkmark Supplemental Workers & # 039; Compensação (99) Checkmark Charitable Gift Matching (116)
Família & amp; Parenting.
Checkmark Maternity & amp; Licença de paternidade (443) Checkmark Trabalho de casa (328) Checkmark Assistência de fertilidade (85) Cuidados Dependentes Checkmark Assistência de Adoção (106) Childcare Checkmark Horas Reduzidas ou Flexíveis (100) Checkmark Licença Militar (116) Checkmark Family Leave Medical (121) Checkmark Unpaid Licença Estendida (104)
Férias & amp; Intervalo.
Checkmark Vacation & amp; Pagado Tempo Desligado (460) Checkmark Sick Days (122) Checkmark Feriados pagos (124) Checkmark Voluntário Tempo desligado (86) Sábado Checkmark Bereavement Leave (115)
Perks & amp; Descontos.
Checkmark Desconto para Empregados (407) Almoço ou Snacks Grátis Checkmark Employee Assistance Program (120) Checkmark Gym Membership (109) Cheques de assinantes e amp; Assistência Pet Friendly Workplace Checkmark Desconto para celular (96) Company Car Checkmark Company Eventos sociais (106) Travel Concierge Legal Assistance.
Suporte profissional.
Checkmark Programa de Diversidade (114) Checkmark Job Training (107) Checkmark Desenvolvimento Profissional (116) Programa de Aprendizagem Checkmark Atribuição de Matrícula (121)
Trabalhar na GE? Compartilhe suas experiências.
Estrela Muito Insatisfeito Estrela Insatisfeito Estrela Neutra (& # 034; OK & # 034;) Star Satisfied Star Muito Satisfeito.
Atualizações da empresa.
Expert Career Advice Anterior Próximo.
Pesquisa de emprego relacionada Anterior Próximo.
Sua resposta será removida da revisão & ndash; isto não pode ser desfeito.

empregados em opções de estoque Ge
Será uma semana movimentada para investidores do setor de tecnologia, à medida que a Apple e o Alphabet estão programados para publicar.
Wells Fargo leva 110 ações indo para Ex-dividendo esta semana.
Existem 110 ações passando ex-dividendo nesta semana a partir de segunda-feira, 29 de janeiro. Para investidores de renda.
No Bear Here.
Com os estoques dos EUA entrando em seu quase 8º ano de ganhos e o ciclo comercial atual.
Centros de conhecimento.
Ajuda e informações.
Estoque de dividendos.
Educação.
Siga o Dividendo.
Todas as cotações de ações neste site devem ser consideradas como tendo um atraso de 24 horas.
Certas informações financeiras incluídas no Dividend são proprietárias da Mergent, Inc. ("Mergent") Copyright & copy; 2014. É proibida a reprodução de tais informações sob qualquer forma. Devido à possibilidade de erro humano ou mecânico pelas fontes da Mergent, Mergent ou outros, a Mergent não garante a precisão, adequação, integridade, pontualidade ou disponibilidade ou para os resultados obtidos com o uso dessa informação.
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Propaganda.
Esperar! O seu portfólio está protegido para o que os mercados vão trazer neste outono?
O portfólio de "baixo tempo" de baixo risco.
Criar um portfólio adequadamente diversificado pode ser uma proposta difícil, especialmente quando.
Lista de ETF de baixa volatilidade.
Baixa Volatilidade Os ETFs investem em títulos com baixas características de volatilidade. Esses fundos tendem a ter preços de ações relativamente estáveis ​​e maiores que os rendimentos médios.
10 ETFs para redução de risco em seu portfólio.
Os investidores que suspeitam que o mercado de ações podem estar prestes a recusar podem tomar medidas para reduzir o.

Compensação.
Aprovação de assessoria do Pay & amp; Freqüência de Votos Futuros.
Sobre o que você está votando?
PROPOSTAS DE GESTÃO NOS. 1 & amp; 2.
De acordo com a Seção 14A da Lei de Câmbio, pedimos aos accionistas que votem com base no conselho:
Diga no salário. Aprovação da compensação paga aos nossos executivos nomeados, conforme descrito nesta declaração de procuração (Proposta de Gestão nº 1). Diga na frequência. Aprovação da frequência de votos futuros por pagamento (Proposta de Gestão nº 2). Os proprietários de ações não votaram para aprovar a recomendação do Conselho, mas sim poderão especificar se os votos futuros devem ocorrer a cada ano, dois anos ou três anos.
Por que o conselho recomenda uma votação para a proposta de pagamento direto.
A Diretoria acredita que nossas políticas e práticas de remuneração são efetivas para alcançar os objetivos da empresa:
Recompensando o desempenho financeiro e operacional sustentado e a excelência de liderança. Alinhando nossos executivos & rsquo; interesses com os de nossos donos de ações para criar valor a longo prazo. Motivando os executivos a permanecerem conosco para carreiras longas e produtivas.
Por que a Diretoria recomenda a realização de votos futuros por voto em cada ano. Participamos de pessoas envolvidas nesta questão e, com base em seus comentários, acreditamos que uma parcela significativa de nossos investidores preferiria uma votação anual expressa. De acordo com a política da Diretoria de prover votos anuais, a próxima votação expressa em pagamento será realizada em nossa reunião anual de 2018.
Impacto dos votos. Essas propostas de assessoria não são vinculativas para o Conselho de Administração. No entanto, o Conselho e o Comitê de Remuneração irão analisar e considerar os resultados da votação ao avaliar nosso programa de remuneração de executivos.
A SUA PLACA RECOMENDA VOTAR PARA PROPOSTA DE PAGAMENTO DE DIREITO E POR FAZER VOTOS FUTUROS DE PAGAMENTO EM CADA CADA ANO.
Visão geral do nosso Programa de Compensação Executiva.
Embora a discussão da remuneração dos executivos nesta declaração de procuração se centre nas decisões de compensação para nossos executivos e mdash nomeados; Jeff Immelt (presidente e CEO), Jeff Bornstein (SVP e CFO), Beth Comstock (vice-presidente e CEO da Business Innovations), David Joyce (vice-presidente e CEO da aviação), John Rice (vice-presidente e vice - CEO da nossa Organização de Crescimento Global) e Keith Sherin (ex-vice-presidente e CEO da GE Capital) & mdash; nossos programas de remuneração de executivos aplicam-se amplamente em todas as categorias de empregados da GE. Por exemplo, cerca de 120.000 funcionários participam de um programa de bônus anual, mais de 5.000 executivos recebem incentivos de ações e aproximadamente 1.000 executivos seniores participam do programa de prêmio de desempenho de longo prazo (LTPA). Nós nos esforçamos para pagar salários justos e competitivos para todos os nossos funcionários, considerando os mercados de trabalho específicos e a compensação entre pares.
Principais considerações na definição do salário.
EMPHASIS EM DESEMPENHO CONSISTENTE, SUSTENTÁVEL E RELATIVO.
Nosso programa de compensação oferece a maior oportunidade de pagamento para executivos nomeados que demonstram desempenho superior por períodos de tempo sustentados. Também recompensa-os pela execução da estratégia da GE por meio de ciclos econômicos (por exemplo, mantendo níveis consistentes de investimento R & D através de ciclos econômicos). Ao avaliar a consistência do desempenho, também pesamos o desempenho de cada parente executivo em relação aos seus pares no segmento ou função da indústria.
DESAFIANDO METROS DE DESEMPENHO ALIGNADOS PARA O NOSSO QUADRO DE INVESTIDORES.
Nós estabelecemos métricas de desempenho para nossos programas de compensação de incentivos que combinam nossos quadros operacionais de curto e longo prazos. Nós estabelecemos níveis de desempenho alvo que são desafiadores, mas realizáveis ​​com um bom desempenho e níveis de desempenho máximos que representam metas de alongamento. Por exemplo, todos os nossos programas de prêmio de desempenho de longo prazo pagaram em menos de 105% do desempenho do alvo, variando entre 71% e 104%.
OPORTUNIDADE PAGA FUTURA VERSUS PAGAMENTO EM CURSO.
O Comitê de Remuneração se esforça para fornecer uma combinação adequada de elementos de compensação, incluindo a busca de um equilíbrio entre a compensação de longo prazo e entre a compensação de incentivo de caixa e capital. Os pagamentos em dinheiro são alinhados e recompensam o desempenho mais recente, enquanto os prêmios de ações incentivam nossos executivos nomeados a continuarem a produzir resultados por um longo período de tempo e também servem como ferramenta de retenção. O comitê acredita que a maioria dos nossos executivos nomeados & rsquo; a compensação deve ser condicionada ao desempenho da empresa, principalmente a longo prazo, desempenho operacional e estoque.
JUSTIÇA DA COMISSÃO DE COMPENSAÇÃO.
Nossos programas de compensação equilibram os acordos onde os pagamentos estão vinculados a objetivos de desempenho quantitativo específicos com aqueles em que o comitê avalia uma ampla gama de fatores quantitativos e qualitativos, como confiabilidade na entrega de metas financeiras e de crescimento, medidas focadas na sustentabilidade (incluindo o desempenho à luz de risco assumido), o desempenho no contexto do ambiente econômico em relação a outras empresas, um histórico de integridade, bom senso, a capacidade de criar mais crescimento e liderar outros e o tamanho absoluto dos pacotes de pagamento total.
SIGNIFICADO DOS RESULTADOS DA COMPANHIA GERAL.
A avaliação do comitê dos executivos nomeados & rsquo; O desempenho coloca forte ênfase em suas contribuições ao desempenho geral da empresa, em vez de se concentrar apenas em seus negócios ou funções específicas. O comitê acredita que os executivos nomeados, como membros-chave da equipe de liderança da empresa, compartilham a responsabilidade de apoiar os objetivos e o desempenho da GE. Rsquo; s. Embora esta filosofia de compensação influencie todas as decisões de remuneração do comitê, ela tem o maior impacto nas bolsas de incentivo patrimoniais anuais.
CONSIDERAÇÃO DE RISCOS.
Nossos programas de compensação são equilibrados e focados no longo prazo para que nossos executivos nomeados possam alcançar a maior compensação através de um desempenho superior consistente durante períodos de tempo sustentados. Além disso, grandes quantidades de compensações geralmente são diferidas ou realizáveis ​​somente após a aposentadoria, proporcionando fortes incentivos para gerenciar a longo prazo, evitando a tomada de riscos excessivos no curto prazo. Objetivos e objetivos, que incluem medidas específicas, focadas em riscos, refletem uma combinação equilibrada de medidas de desempenho para evitar colocar um peso excessivo em qualquer medida. A remuneração também é equilibrada entre os pagamentos atualizados em dinheiro, o diferido de caixa e os prêmios patrimoniais. Com exceções limitadas, a comissão mantém o poder discricionário para ajustar a compensação de acordo com a nossa política de clawback, bem como a qualidade do desempenho e a adesão aos valores da empresa. Veja & ldquo; Como Supervisamos & amp; Gerenciar risco empresarial & rdquo; em Governança.
Elementos de compensação primária para 2016.
Como nossos planos de compensação de incentivos são pagos para 2016.
Esta seção fornece uma visão geral de como a GE se deparou com os objetivos estabelecidos no âmbito do programa de bônus anual de 2016 e das PSU de 2013 e 2016 e das UTI 2014 e 2016. Veja & ldquo; Ações de compensação para 2016 & rdquo; abaixo dos montantes pagos aos executivos nomeados ao abrigo desses programas, bem como a forma como avaliamos o desempenho individual. Veja os "Prêmios de Longo Prazo de Desempenho" (LTPAs) & rdquo; abaixo para obter informações sobre nossas LTPA 2016 e ndash 2018.
Bônus Anuais 2016.
PISCINA DE BÔNUS FUNDADA EM 80%. Nós concedemos bônus aos nossos executivos nomeados sob um programa de bônus recentemente reformulado e mais fórmico. O tamanho do pool de bônus estava subordinado à realização de métricas de desempenho financeiro e estratégico especificadas, conforme mostrado abaixo.
SEM AJUSTES PARA METROS DE DESEMPENHO FINANCEIRO. Embora o Comitê de Remuneração tenha a autoridade nos termos do programa de bônus para ajustar as métricas de desempenho financeiro, não fez tais ajustes para 2016 (ou seja, eles foram calculados da mesma forma que a GE os reportou para fins de relatórios financeiros).
COMO REALIZAMOS CONTRA NOSSOS OBJETIVOS ESTRATÉGICOS.
EXECUTE A TRANSFORMAÇÃO DE PORTFOLIO. Em 2016, a GE atuou agressivamente em sua integração da Alstom, com sinergias de custos antes do plano e a Alstom contribuiu com US $ 0,05 para o lucro por ação da GE (excluindo o impacto cambial). A empresa também capitalizou o ciclo do petróleo e do gás, planejando uma combinação com a Baker Hughes para criar uma empresa de petróleo e gás digitalizada, completa, sujeita às condições habituais de fechamento. A GE realizou investimentos estratégicos para recuperar o valor da cadeia de abastecimento e ampliar os negócios digitais e aditivos da empresa. A empresa também continuou a simplificar o portfólio, anunciando planos para vender soluções industriais e de água e fazendo progressos substanciais no plano de saída da GE Capital (assinando contratos para 96% das vendas de ativos planejadas a partir do final do ano de 2016 e encerrando a designação da GE Capital & rsquo; s como SIFI não bancário). MANTENHA A ESTRATÉGIA DE ATRIBUIÇÃO DE CAPITAL EQUILIBRADA. A GE executou uma estratégia equilibrada de alocação de capital em 2016, devolvendo US $ 30,5 bilhões aos investidores (US $ 8,5 bilhões em dividendos e US $ 22 bilhões em recompra), o que excedeu o objetivo da nossa estrutura de investimentos de aproximadamente US $ 26 bilhões. A empresa também realizou US $ 8,9 bilhões em investimentos orgânicos (despesas de capital, incluindo R & D, P & amp; E e Digital) e investiu US $ 2,3 bilhões em M e A para suportar o crescimento a longo prazo da GE. MELHORAR OS NEGÓCIOS DA GE DE CHALLENGED. A saúde teve um excelente ano, virando as quedas de negócios em 2015 para aumentar o lucro do segmento 10% para US $ 3,2 bilhões e as margens operacionais 100 pontos base para 17,3% em 2016, impulsionadas por melhorias de produtividade e forte crescimento nas Ciências da Vida. Oil & amp; O gás experimentou uma contínua pressão no mercado de preços de petróleo deprimidos, mas aproveitou o ciclo planejando uma combinação com a Baker Hughes e reduzindo os custos em US $ 700 milhões enquanto reestruturava o negócio. Conexões de energia e amp; A iluminação teve um ano difícil, mas está trabalhando para integrar o negócio de rede da Alstom e rsquo; reestruturar para posicionar o negócio para o crescimento em 2017. ACCELERATE DIGITAL INDUSTRIAL. A empresa realizou progressos significativos na construção de sua capacidade digital em 2016, encerrando o ano com US $ 4 bilhões com pedidos de software e pré-operados (até 22% ano a ano). A GE investiu mais de US $ 1 bilhão para adquirir o ServiceMax, BitStew, Wise. io e Meridium. A empresa também continuou a expandir a plataforma de software da Predix, GE para a Internet Industrial, que, no final de 2016, tinha aproximadamente 22.000 desenvolvedores e mais de 400 parceiros. CUSTOS MAIS BAIXOS DO PRODUTO. As margens brutas do segmento industrial aumentaram 40 pontos base em 2016 para 27,8% (excluindo a Alstom). * A GE continuou a executar sua iniciativa de redução de custos de produtos através de investimentos em fabricação de aditivos (aquisições de Concept Laser e Arcam) e integração reversa da cadeia de suprimentos ( aquisição planejada LM Wind Power). A empresa também capturou US $ 0,9 bilhão em valor de abastecimento por deflação. REALIZE OS RESULTADOS DA GE STORE. O crescimento da receita orgânica do segmento industrial (ajustado para incluir a Alstom em novembro e dezembro de 2015 e 2016) de 1% * para 2016 perdeu nosso enquadramento de investidores de 2% e 4%, e as margens operacionais industriais (excluindo a Alstom) diminuíram 30 pontos base * (também abaixo do alvo). O retorno industrial sobre o capital total diminuiu 150 pontos base. * No entanto, a empresa continuou a intensificar seu foco em demonstrar o valor da GE Store (uma troca global de tecnologia, talento e expertise através da ampla e diversificada rede de negócios e negócios da GE e mercados). As receitas dos segmentos industriais da GE nos mercados de crescimento foram de US $ 45 bilhões (+ 6%), enquanto as encomendas de infra-estrutura do mercado de crescimento foram de US $ 47 bilhões (plano ano-a-ano). As receitas do segmento industrial dos serviços foram de US $ 52 bilhões (+ 9%). A carteira de pedidos aumentou US $ 6 bilhões, totalizando US $ 321 bilhões no final do ano. A GE Capital permitiu (através do financiamento ou da organização de financiamento) mais de US $ 13 bilhões de pedidos industriais. A empresa também continuou a melhorar a eficiência da introdução de novos produtos ao executar em lançamentos significativos de produtos. GERENCIAR O RISCO E A CULTURA DA EMPRESA. A empresa continuou a concentrar-se no gerenciamento de riscos críticos da empresa, incluindo liquidez (mantendo um balanço sólido, terminando em 2016 com US $ 48,1 bilhões em caixa e equivalentes, incluindo US $ 10,5 bilhões no nível dos pais), qualidade do produto (reformulando os comitês do Conselho para se concentrar em indústrias risco), cibersegurança (continuação da expansão de capacidades) e conformidade e integrações de negócios (com foco em Alstom). A GE também se concentrou em acelerar sua transformação cultural industrial digital com a implantação de sua ferramenta de desenvolvimento de desempenho e o envio de líderes-chave para o seu instituto de liderança global (
28% dos assalariados assistiram a Crotonville em 2016).
O Comitê de Remuneração avaliou o desempenho da GE em seus objetivos estratégicos em 95%, em vez de 100% porque, embora a empresa tenha sido um bom ano, a GE perdeu alguns dos principais objetivos do investidor (crescimento orgânico da receita e expansão da margem) e alguns negócios-chave , incluindo Power, Oil & amp; Conexões de gás e energia, experientes ambientes de negócios desafiadores.
* Medidas financeiras não-GAAP disponíveis abaixo.
COMO NÓS EVALUAMOS O DESEMPENHO DE NEGÓCIOS E ATRAVÉS DA PISCINA DE BÔNUS.
COMO O PROGRAMA BÔNUS FUNCIONA. Pagamos bônus em dinheiro aos nossos executivos nomeados em fevereiro ou março no ano anterior, no âmbito de um programa destinado a alinhar de perto a remuneração de incentivo e os resultados anuais da empresa. Aqui é como funciona o plano:
2013 & amp; Subsídios de PSU 2014.
Os PSU de 2013 PAGAM PARA USARES 100% E 2014 PAGANDO PARA FORA DE 83%. Em fevereiro de 2017, o Sr. Immelt ganhou 100% das PSUs concedidas a ele em 2013 e 83% das PSUs concedidas a ele em 2014. As PSUs remanescentes da concessão de 2014 foram perdidas por causa do ajuste negativo do modificador TSR. (A tabela abaixo é específica para o Sr. Immelt, já que não iniciamos a concessão de PSUs ao time de liderança sênior até 2015.)
Ações de compensação para 2016.
Compensação do CEO Alinea Com o Desempenho.
Jeff Immelt.
PRESIDENTE & amp; CEO Idade: 61 Educação: Dartmouth; MBA, Harvard GE tenure: 35 anos.
DESEMPENHO. Como o Presidente & amp; CEO, o Sr. Immelt desempenha um papel crítico na entrega do quadro de desempenho para o programa de bônus anual da empresa e, como tal, seus objetivos de desempenho foram os mesmos que os objetivos financeiros e estratégicos utilizados para financiar o pool de bônus 2016 (veja & ldquo Bônus Anuais 2016 e acima). O Comitê de Remuneração acredita que o Sr. Immelt teve um bom desempenho em um ambiente desafiador.
PAGAMENTO. À luz do seu desempenho, o Comitê de Remuneração concedeu ao Sr. Immelt um bônus em dinheiro de US $ 4,3 milhões, 80% do alvo (o mesmo que o pool de bônus da empresa). Além disso, o comitê concedeu ao Sr. Immelt um prêmio de equivalência patrimonial com um valor justo da data de outorga de US $ 6,8 milhões (queda de 26% de US $ 9,2 milhões em 2015), 2/3 PSU ponderadas (200k concedidas) e 1/3 de opções de compra de ações (600k concedidas ). O salário base do Sr. Immelt manteve-se estável em US $ 3,8 milhões (e foi aumentado apenas duas vezes desde 2005).
Análise de Compensação CEO.
Responsabilidade do CEO.
Uma parcela significativa da remuneração do Sr. Immelt está em risco a cada ano, vinculada ao desempenho operacional e ao desempenho das ações da empresa. Para 2016, 71% de sua compensação estava em risco. * Como resultado, o Sr. Immelt pode não ganhar todas as compensações que devemos incluir na Tabela de compensação resumida.
Ao longo dos últimos cinco anos, os ganhos da GE foram classificados 10 & ndash; 16º na S & amp; P 500, enquanto a remuneração do Sr. Immelt foi o 21º e 169º entre os CEOs S & P 500. **
* Representa a soma dos valores reportados no Bônus, PSU e amp; RSUs, opções de estoque e LTPAs como uma porcentagem da remuneração total menos alteração no valor da pensão.
& thinsp; ** Os ganhos refletem o lucro líquido reportado, exceto para 2015 e 2016, que refletem os ganhos operacionais operacionais + Verticais à luz dos encargos do plano de saída da GE Capital (com base nos dados da Bloomberg). Os dados de compensação são até 2015 (o ano mais recente para o qual os dados estão disponíveis) e reflete a remuneração total reportada da SEC menos a mudança no valor da pensão (com base nos dados da Equilar).
NOSSO CEO PROPORCIONA UM VALOR SUBSTANCIAL DE GE STOCK E É ALINHADO COM COMPUTADORES.
Como indicação do alinhamento do Sr. Immelt com os proprietários de ações, ele comprou aproximadamente 1,2 milhão de ações no mercado aberto desde que ele se tornou CEO em 2001. Além disso, desde que ele se tornou CEO, ele não vendeu nenhuma das ações que ele adquiriu através exercitando opções de compra de ações ou a aquisição de VRS ou UPA (exceto aqueles retidos para pagar os preços de exercício da opção e os impostos sobre tais prêmios). Veja & ldquo; Stock Ownership Information & rdquo; em Governança para mais informações sobre a propriedade do Sr. Immelt em ações da GE.
AJUSTES DO PAGAMENTO PADRÃO SOBRE OS ÚLTIMOS 10 ANOS.
8 de cada 10 anos.
Sem aumento salarial.
Valor do vencedor 2006 e ndash; o pagamento do LTPA de 2008 foi dispensado.
O Sr. Immelt solicitou (e o comitê aprovou) que ele não recebeu um bônus.
PSUs e opções canceladas por causa do rigor dos objetivos de desempenho.
Compensação para nossos outros executivos nomeados.
Jeff Bornstein.
Idade: 51 Educação: NORTEESTER GE Tenure: 28 Years.
CFO, GE (desde 2013) e vice-presidente sênior; anteriormente CFO da GE Capital, Aircraft Engine Services e Plastics.
O comitê reconheceu a contribuição do Sr. Bornstein para os objetivos globais da GE e da empresa para o programa de bônus anual, bem como sua execução na estratégia de alocação de capital da empresa (retornando US $ 30,5 bilhões aos investidores) e liderança de iniciativas-chave para reduzir custos e melhorar a conversão de caixa.
DECISÕES DE COMPENSAÇÃO PARA 2016.
Salário base e mdash; aumentou 11% para US $ 1,775 milhões, em vigor em julho de 2016, após um intervalo de 18 meses desde o último aumento de salário que é padrão para os executivos nomeados da GE Cash bonus & mdash; US $ 1,9 milhão, 80% do alvo de US $ 2,4 milhões (o mesmo que o 80% de financiamento da Corporação) Subsídio de capital e mdash; Valor justo da data de concessão de US $ 2,3 milhões (o mesmo que outros vice-presidentes), dividido uniformemente entre as UTI, as URE e as opções.
Beth Comstock.
Idade: 56 Educação: William & amp; Mary GE tenencia: 24 anos.
CEO, Business Innovations (desde 2015) e vice-presidente; anteriormente chefe de marketing e comercial; presidente de mídia integrada da NBC Universal.
O comitê reconheceu a contribuição da Sra. Comstock para os objetivos globais da GE e Business Innovations para o programa de bônus anual, bem como sua liderança na aceleração da iniciativa de simplificação da empresa, impulsando uma cultura mais empreendedora através do FastWorks.
DECISÕES DE COMPENSAÇÃO PARA 2016.
Salário base e mdash; permaneceu estável em US $ 1,5 milhão, com seu último aumento de salário em vigor em setembro de 2015 bônus de caixa e mdash; US $ 1,2 milhão, 66% do alvo de US $ 1,9 milhão (igual ao financiamento combinado de iluminação / corporação de 37/80%, com participação corporativa ponderada 2/3) Subsídio de capital; Valor justo da data de outorga de US $ 2,3 milhões (o mesmo que os outros vice-presidentes), dividido uniformemente entre as UTIs, RSUs e opções. RSU de 150k para retenção.
David Joyce.
Idade: 60 Educação: Estado de Michigan; MA Finanças, posse de Xavier GE: 37 anos.
Presidente & amp; CEO, Aviation (desde 2008) e vice-presidente, principal aditivo GE; anteriormente vice-presidente e gerente geral de motores comerciais e ocupou outros cargos da GM na Aviação.
O comitê reconheceu a contribuição do Sr. Joyce para os objetivos globais da GE e da Aviação para o programa de bônus anual, bem como sua liderança no lançamento do novo negócio de fabricação de aditivos da GE e aquisição da Arcam e do Concept Laser.
DECISÕES DE COMPENSAÇÃO PARA 2016.
Salário base e mdash; aumentou 8% para US $ 1,3 milhão, em vigor em março de 2016, após um intervalo de 18 meses desde o último aumento de salário que é padrão para os executivos nomeados da GE; posteriormente aumentou 12% para US $ 1,45 milhões, a partir de setembro de 2016, após a sua promoção ao vice-presidente de bônus em dinheiro e mdash; US $ 1,4 milhão, 89% do alvo de US $ 1,6 milhão (o mesmo que o financiamento de 89% da Aviation), acrescido de US $ 100.000 para desempenho extraordinário na Aviation e com a participação e participação de GE Aditivo Equity; Valor justo da data de outorga de US $ 2,3 milhões (o mesmo que os outros vice-presidentes), dividido uniformemente entre as UTIs, RSUs e opções. RSU de 150k para retenção.
Idade: 60 Educação: Hamilton GE tenencia: 39 anos.
Presidente & amp; CEO, Global Growth Organization (desde 2010) e vice-presidente; anteriormente CEO de Tecnologia de Infra-estrutura, Sistemas Industriais, de Energia e de Transporte.
O comitê reconheceu a contribuição do Sr. Rice para as metas globais de GE e GGO para o programa de bônus anual, bem como sua liderança na construção das capacidades de financiamento de projetos da empresa e em parcerias com agências de crédito à exportação para ajudar a financiar projetos-chave de infraestrutura.
DECISÕES DE COMPENSAÇÃO PARA 2016.
Salário base e mdash; aumentou 7% para US $ 2,8 milhões, a partir de 1º de janeiro de 2017, após um intervalo de 18 meses desde o último aumento de salário que é padrão para os executivos da GE & rsquo; US $ 3,3 milhões, 75% do objetivo de US $ 4,4 milhões (igual ao financiamento combinado de GGO / Corporação de 69/80%, cada ponderado em 1/2) Subsídio de equivalência patrimonial; Valor justo da data de concessão de US $ 2,3 milhões (o mesmo que outros vice-presidentes), dividido uniformemente entre as UTI, as URE e as opções.
Keith Sherin.
Idade: 58 Educação: Notre Dame; MBA, Columbia GE tenencia: 36 anos.
Ex-presidente & amp; CEO da GE Capital e vice-presidente (aposentado em 31 de dezembro de 2016); anteriormente CFO, GE; papéis de liderança em muitas empresas-chave da GE.
O comitê reconheceu a contribuição do Sr. Sherin para os objetivos gerais de GE e GE Capital para o programa de bônus anual, incluindo sua liderança do plano de saída da GE Capital.
DECISÕES DE COMPENSAÇÃO PARA 2016.
Salário base e mdash; aumentou 6% para US $ 2,65 milhões, a partir de 1º de janeiro de 2016, após um intervalo de 18 meses desde o último aumento de salário que é padrão para os executivos nomeados da GE Cash bonus & mdash; US $ 3,8 milhões, 94% do objetivo de US $ 4,0 milhões (o mesmo que o 94% de capital da GE Capital) Subsídio de ações e mdash; não recebeu uma concessão de capital próprio à luz da sua aposentadoria planejada.
Compensação Realizada.
O cálculo da remuneração total da SEC, conforme mostrado na Tabela de compensação resumida abaixo, inclui vários itens orientados por pressupostos contábeis e atuariais. Como resultado, a remuneração total conforme definida pela SEC difere substancialmente da compensação efetivamente realizada por nossos executivos nomeados em um determinado ano. Para complementar a divulgação exigida pela SEC, a tabela abaixo mostra a compensação realmente realizada pelos executivos nomeados, conforme relatado nos formulários WS-2 do IRS. Esses valores não substituem os valores reportados como compensação total da SEC. A informação sobre como a compensação realizada é calculada pode ser encontrada nos materiais suplementares no site de proxy da GE & rsquo; consulte Recursos Úteis).
2016 VS. 2015 MONTANTES. O aumento da remuneração realizada de 2015 a 2016 deveu-se principalmente ao pagamento no início de 2016 de LTPAs obtidos ao longo do período de desempenho de três anos de 2013 a 2015. Em média, esses pagamentos compreendiam 45% dos executivos nomeados & rsquo; realizou compensações em 2016.
Compensação resumida.
Tabela de compensação de resumo.
As variações acumuladas do ano em relação ao valor da pensão geralmente são impulsionadas em grande parte por mudanças nos pressupostos de pensões atuariais, bem como por aumento no serviço, idade e compensação. Para 2016, a mudança no valor da pensão para o Sr. Immelt foi inferior a 2015, devido em parte ao seu menor pagamento de bônus e com mais de 60 anos de idade. Com exceção do Sr. Sherin, os outros executivos nomeados & rsquo; A variação no valor da pensão foi superior a 2015, em parte devido à redução de 27 pontos base na taxa de desconto estatutária, assumindo de 4,38% para 4,11%. Veja & ldquo; Benefícios de pensão & rdquo; abaixo para obter informações adicionais, incluindo os pressupostos de valor presente utilizados neste cálculo. Para o Sr. Sherin, a mudança no valor da pensão inclui pagamentos de provisão para aposentadoria antecipada em US $ 7.191.154 (ver "Acordo de aposentadoria antecipada" com o Sr. Sherin & rdquo abaixo).
Os resultados acima do mercado representam a diferença entre as taxas de juros do mercado calculadas de acordo com as regras da SEC e os juros de 6% a 14% eventualmente creditados pela empresa no salário que os executivos nomeados diferiram ao abrigo de vários programas salariais diferidos executivos vigentes entre 1987 e 2016. Ver & ldquo Compensação Diferida & rdquo; abaixo para obter informações adicionais.
TODOS OS OUTROS COMP. Fornecemos aos nossos executivos nomeados outros benefícios que acreditamos serem razoáveis, competitivos e consistentes com o nosso programa geral de remuneração de executivos. Os custos desses benefícios para 2016, deduzidos os reembolsos dos executivos nomeados, são mostrados na tabela abaixo.
Prêmios de seguro de vida. Pagamentos tributables para cobrir os prêmios das apólices de seguro de vida universal que possuem. Essas políticas incluem: (1) Executive Life, que fornece políticas de seguro de vida universal para os executivos nomeados totalizando US $ 3 milhões na cobertura no momento da inscrição e aumentou 4% anualmente depois disso; e (2) Liderança Vida, que fornece políticas de seguro de vida universal para os executivos nomeados com cobertura de 2X seu salário anual (salário + bônus mais recente).
Plano de poupança de aposentadoria. Contribuições de correspondência da GE para os executivos nomeados & rsquo; Contas RSP equivalentes a 3,5% do pagamento até os limites impostos de acordo com as regras do IRS.
Uso pessoal de aeronaves. Por motivos de segurança, o comitê exige que nosso CEO use aeronaves da companhia para todas as viagens aéreas (pessoais e comerciais). Os valores refletem o custo incremental para a GE para os executivos nomeados & rsquo; uso pessoal de aeronaves da empresa, com base nos seguintes custos variáveis: uma parcela de manutenção e reparos em andamento, combustível para aeronaves, comunicações por satélite e quaisquer despesas de viagem para a tripulação de vôo. Esses valores excluem custos não variáveis, como pintura exterior, remodelação de interiores e inspeções regularmente agendadas, que teriam sido realizadas independentemente de haver algum uso pessoal. O custo incremental agregado, se houver, de viagem pela família ou convidados do executivo também está incluído.
Carros alugados. Despesas para o programa de veículos alugados, tais como taxas de arrendamento e administração, custos administrativos e custos de manutenção.
Financial & amp; Planejamento Tributário. Despesas para o uso de assessores para preparação e planejamento financeiro, imobiliário e tributário, e análise e assessoria de investimentos.
Realocação do QG. Despesas de deslocalização dos executivos nomeados e suas famílias em conexão com o movimento da sede corporativa da GE de Fairfield, CT para Boston, MA. Os benefícios para os executivos nomeados, incluindo os benefícios fiscais descritos abaixo, geralmente eram consistentes com aqueles fornecidos a todos os funcionários que foram convidados a mudar, exceto que os oficiais da empresa receberam um benefício de compra de perda de casa potencial mais elevado do que outros funcionários.
Benefícios fiscais de deslocalização. Benefícios fiscais fornecidos em conexão com o deslocamento da sede da empresa.
De outros. Quantidade total de outros benefícios fornecidos, nenhum dos quais excedeu individualmente o maior de US $ 25.000 ou 10% do valor total dos benefícios incluídos no Uso Pessoal de Aeronaves, Aluguel de Automóveis, Planejamento tributário, deslocalização do QG e outras colunas para o executivo nomeado (exceto como descrito de outra forma nesta seção). Esses outros benefícios incluíram itens como: (1) taxas de serviço de carro; (2) home alarm and generator installation, maintenance and monitoring; (3) participation in the Executive Products and Lighting Program, which was terminated for executives in June 2016 when we sold our Appliances business; (4) an annual physical examination; and (5) certain expenses associated with the named executives’ and their invited guests’ attendance at the 2016 Olympic Games in Rio de Janeiro, Brazil, of which GE was an official sponsor.
With respect to Mr. Rice, this column also reports the following benefits provided to him in connection with his non-permanent relocation, at the company’s request, to Hong Kong. These benefits, which are consistent with those we provide to employees working on non-permanent assignments outside their home countries, consisted of: (1) cost-of-living adjustment ($397,622); (2) housing and utilities ($699,125); and (3) other expatriate and relocation allowances and expenses ($84,276). Any benefits paid in Hong Kong dollars (HKD) were converted to USD on a monthly basis using the following average monthly exchange rates for 2016 (expressed as HKD per USD): January through June — ​7.75; July through December — ​7.76.
SEC TOTAL. Total compensation, as determined under SEC rules.
ADJUSTED SEC TOTAL. We are presenting this supplemental column to show how the Compensation Committee views the named executives’ annual compensation. This column adjusts the amounts reported in the SEC Total column by subtracting the change in pension value reported in the Pension & Deferred Comp. column to show how year-over-year changes in pension value impact total compensation. The amounts reported in this column differ substantially from, and are not a substitute for, the amounts reported in the SEC Total column.
Long-Term Incentive Compensation.
Long-Term Performance Awards (LTPAs)
We grant LTPAs only once every three or more years, in contrast to many companies that grant such awards annually. These awards have formulaically determined payouts, based on equally weighted performance metrics that the Compensation Committee sets at the beginning of each three-year performance period. Over the last five LTPA programs, the committee has largely used consistent performance metrics (earnings, cash generation and ROTC), modifying them only to realign them with changes in our strategic focus (as with the Industrial operating profit margin and cash returned to investors metrics in our 2016–2018 LTPA program). LTPAs are paid in cash or, at the committee’s discretion, in stock.
2016–2018 LTPAs . In March 2016, the Compensation Committee granted contingent LTPAs for the 2016–2018 performance period to approximately 1,000 executives across the company, including the named executives. The awards are payable based on achievement of the performance metrics shown in the table below. The terms and conditions of this LTPA program are the same as the 2013–2015 LTPA program, except for the following modifications:
Five equally weighted performance metrics. Cash returned to investors was added as a metric to the four metrics in the prior program to incentivize returning excess cash to shareowners, and margins replaced the Industrial earnings percentage metric in light of the substantial progress made on the GE Capital exit plan; Lower payout multiples for the named executives. Payout multiples were set at 0.50X, 1.00X, 2.00X at threshold, target and maximum performance (versus 0.75X, 1.50X and 2.00X in the prior program) as part of the committee’s consideration of the size of total pay packages; and Payout multiples based on final salary + average bonus during the performance period. Payout multiples are based on salary in effect at the end of the performance period plus the average bonus received for the three years in the performance period (compared to the higher of participants’ 2014 and 2015 bonuses in the prior program) in light of the increased volatility in bonus amounts under our new annual bonus program.
1 Under the LTPA program, the Compensation Committee can adjust these metrics for extraordinary items. For information on how these metrics are calculated, see “Explanation of Non-GAAP Financial Measures and Performance Metrics” abaixo.
2 Includes GE CFOA (Industrial CFOA plus dividends from GE Capital) plus proceeds from Industrial dispositions (after taxes).
3 Includes Industrial segment profit plus adjusted Corporate operating costs (excludes non-operating pension costs, restructuring and other charges & gains).
4 Includes dividends plus share repurchases.
5 Target performance levels, which were pre-established by the Compensation Committee, are not disclosed (N. D.). Consistent with our historical practice, we will disclose them following completion of the 3-year performance period.
TARGET PERFORMANCE LEVELS ARE CHALLENGING. As with our prior LTPA programs, the target performance levels of the 2016–2018 LTPA metrics are challenging and difficult to achieve, while the maximum performance levels represent stretch goals.
PAST LTPA PAYOUT LEVELS FOR NAMED EXECUTIVES.
HOW THE COMPENSATION COMMITTEE CALCULATES PAYOUTS. For each named executive, LTPA payouts are calculated as shown below (payout multiples for other participants start at significantly lower levels). There is no payout for performance below the threshold level, and amounts are prorated for performance between the established levels. LTPAs are subject to forfeiture under our compensation recoupment policy or if employment terminates before the end of the performance period for any reason other than disability, death or retirement.
2016–2018 LTPA PAYOUT CALCULATION.
HOW THE PAYOUT STRUCTURE FOR OUR NAMED EXECUTIVES DIFFERS FROM THE STRUCTURE FOR OTHER EXECUTIVES. To enhance the transparency of the LTPA program and reinforce the impact of participants’ efforts over each year in the performance period, LTPAs are credited to each named executive’s deferred compensation account in annual installments but not actually paid out until after the third year. (This installment structure does not apply to Mr. Joyce for the 2016–2018 LTPAs, as he was not a named executive when they were granted.) The amount of each installment is calculated, following the end of each year in the performance period, by multiplying total cash compensation at the time by 30% of the projected total 3-year payout percentage (up to the target payout level for the first year). Following the third year, the named executives receive the amounts credited, without interest, adjusted to reflect GE’s actual 3-year performance. The first-year installment is reported as 2016 compensation in the LTPAs column in the Summary Compensation Table above.
Annual Equity Incentive Awards.
Historically, GE used a different equity compensation structure for the CEO than for other senior leaders: the CEO typically received equity compensation solely in the form of PSUs while other senior leaders received it largely in the form of stock options. In 2015, we began granting annual equity incentive awards to all named executives in the form of stock options, RSUs and PSUs to better align the equity compensation structure for the company’s most senior leaders and drive greater accountability.
How we determine award amounts. Annual equity incentive awards are targeted to be equally weighted (by approximate accounting value) among stock options, RSUs and PSUs, except that the CEO’s award is targeted to be weighted 2/3 PSUs and 1/3 options (he does not receive RSUs). In determining award amounts, the committee evaluates executives’ achievement of specific performance goals — with strong emphasis on their contributions to overall company performance in addition to their individual business or function — as well as expected future contributions to GE’s long-term success, using past performance as a key indicator.
Why we use equity awards. Equity awards encourage our named executives to continue to deliver results over a longer period of time, and they also serve as a retention tool.
Why we use stock options and RSUs. W e believe that stock options and RSUs are a means to effectively focus our named executives on delivering long-term value to our shareowners. Options have value only to the extent that the price of GE stock rises between the grant date and the exercise date, and RSUs reward and retain the named executives by offering them the opportunity to receive GE stock if they are still employed by us on the date the restrictions lapse. Why we use PSUs. We see PSUs as a means to focus our named executives on GE’s long-term operating goals. PSUs have formulaically determined payouts that convert into shares of GE stock only if the company achieves specified performance goals. See the “Outstanding Equity Awards Table” below for information regarding the performance conditions for outstanding PSUs.
Long-Term Incentive Compensation Table.
The following table — also known as the Grants of Plan-Based Awards Table — shows LTPAs, PSUs, RSUs and stock options granted to our named executives in 2016 under the 2007 Long-Term Incentive Plan, a plan that shareowners approved in 2007 and 2012 (and that shareowners are being asked to reapprove at the annual meeting, see “Management Proposal No. 3 — Approval of the GE 2007 Long-Term Incentive Plan, as Amended to Extend the Plan and Increase the Number of Plan Shares” on Shareowner Proposals).
*Amounts reported as RSUs and stock options for Mr. Sherin reflect awards previously granted that were modified pursuant to Mr. Sherin’s early retirement agreement (see “Early Retirement Agreement with Mr. Sherin” below). The exercise price reflects the weighted average exercise price for the previously granted options that were modified.
ESTIMATED FUTURE PAYOUTS UNDER LONG-TERM PERFORMANCE AWARDS. The named executives were granted LTPAs under the 2016–2018 LTPA program (reported as a multiple of the executive’s salary and bonus at the time of grant), subject to achievement of the threshold, target and maximum goals for all five performance measures. The actual payouts, if any, will be calculated using the executive’s base salary as in effect in December 2018 and the average of the executive’s bonuses awarded for 2016 through 2018. The potential LTPA payouts are performance-driven and therefore completely at risk. See “Long-Term Performance Awards (LTPAs)” above for a description of the performance goals and salary and bonus multiples for determining payouts. See the Summary Compensation Table above for the first-year (2016) installments for these awards.
ESTIMATED FUTURE PAYOUTS UNDER PERFORMANCE SHARE UNITS. The named executives were granted PSUs in 2016 that could convert into shares of GE stock at the end of the three-year performance period based on two equally weighted operating goals: Total Cash and Operating Margin. Each operating goal has specified threshold and target performance levels such that performance below threshold results in no PSUs being earned, performance at threshold results in 50% of the PSUs being earned, and performance at or above target results in 100% of the PSUs being earned (with proportional adjustments for performance between threshold and target). In addition, the PSUs have a relative TSR modifier so that the number of PSUs that convert into shares based on achievement of the two operating goals may be adjusted upward or downward by up to 25%, depending on the company’s TSR performance versus the S&P 500 over the performance period. Accordingly, the named executives may receive between 0% and 125% of the target number of PSUs granted. Dividend equivalents are paid out only on shares actually received.
The number of PSUs shown in the threshold, target and maximum columns are calculated as follows: (1) threshold assumes that GE achieves the threshold performance level for only one operating goal and there is a negative 25% adjustment for relative TSR performance, (2) target assumes that GE achieves the target performance level for both operating goals and there is no adjustment for relative TSR performance, and (3) maximum assumes that GE achieves the target performance level for both operating goals and there is a positive 25% adjustment for relative TSR performance. See “PSUs” below for additional information.
RESTRICTED STOCK UNITS. The number of RSUs granted in 2016, which will vest in five equal annual installments, with the first installment (20%) vesting one year from the grant date (except that Mr. Joyce’s special retention grant in July will cliff vest 100% on December 31, 2019). Dividend equivalents are paid out only on shares actually received.
STOCK OPTIONS. The number of stock options granted in 2016, which will vest in five equal annual installments, with the first installment (20%) becoming exercisable one year from the grant date. See the Outstanding Equity Awards Table below and “Potential Termination Payments” below for information on accelerated vesting for retirement-eligible awards.
STOCK OPTION EXERCISE PRICE. Stock option exercise prices reflect the closing price of GE stock on the grant date.
GRANT DATE FAIR VALUE OF AWARDS. Generally, the aggregate grant date fair value is the amount that the company expects to expense in its financial statements over the award’s vesting schedule.
For stock options, fair value is calculated using the Black-Scholes value of each option on the grant date (resulting in a $3.75 per unit value for the September grants and a $3.57 per unit value for the November grant). For RSUs, fair value is calculated based on the closing price of the company’s stock on the grant date, reduced by the present value of dividends expected to be paid on GE common stock before the RSUs vest (resulting in a $31.19 per unit value for Ms. Comstock’s July grant, a $31.20 per unit value for Mr. Joyce’s July grant, and a $30.05 per unit value for the September grants) because dividend equivalents on unvested RSUs (granted after 2013) are accrued and paid out only if and when the award vests. For PSUs, the actual value of units received will depend on the company’s performance, as described above. Fair value is calculated by multiplying the per unit value of the award ($28.87 for the September grants and $26.12 for the November grant) by the number of units corresponding to the most probable outcome of the performance conditions as of the grant date. The per unit value is based on the closing price of the company’s stock on the grant date, adjusted to reflect the relative TSR modifier by using a Monte Carlo simulation that includes multiple inputs such as stock price, performance period, volatility and dividend yield.
Outstanding Equity Awards Table.
The following table — also known as the Outstanding Equity Awards at Fiscal Year-End Table — shows the named executives’ stock and option grants as of year-end. It includes unexercised stock options (vested and unvested) and RSUs and PSUs for which vesting conditions were not yet satisfied as of December 31, 2016.
MARKET VALUE. The market value of RSUs and PSUs is calculated by multiplying the closing price of GE stock as of December 31, 2016 ($31.60) by the number of shares underlying each award and, with respect to the PSUs, assuming satisfaction of the target levels for the applicable performance conditions. For options, the market value is calculated by multiplying the number of shares underlying each award by the spread between the award’s exercise price and the closing price of GE stock as of December 31, 2016.
VESTING SCHEDULE.
Options vest on the anniversary of the grant date in the years shown in the table. The table shows an accelerated stock option vesting schedule for Ms. Comstock and Messrs. Immelt, Joyce and Rice because their awards qualified for retirement-eligible vesting between 2016 and 2020. See “Potential Termination Payments” below for the requirements for an award to qualify for retirement-eligible accelerated vesting (the executive is age 60 or older and the award has been held for at least one year). RSUs vest on the anniversary of the grant date in the years shown in the table, except that certain awards vest on the named executive’s 65th birthday or upon the awards qualifying for retirement-eligible vesting (as discussed above for Options). PSUs vest at the beginning of the year indicated when the Compensation Committee certifies that the performance conditions have been achieved. See “2013 & 2014 PSU Grants” above for details on the performance conditions and payouts for the 2013 and 2014 grants, which have vested. See the table below for details on the performance conditions for the 2015 and 2016 grants.
HOW WE DEFINE THE PERFORMANCE GOALS*
Total cash = GE CFOA (Industrial CFOA + dividends from GE Capital) + proceeds from Industrial dispositions (after tax)
Operating margin = Industrial segment operating margin for 2015 grant (excludes adjusted corporate operating costs); Industrial operating margin for 2016 grant (includes adjusted corporate operating costs)
*The Compensation Committee has the authority to adjust these metrics for extraordinary items.
+/- 25% adjustment to # of PSUs earned refers to:
GE TSR performance 75th percentile positive 25% adjustment GE TSR performance 40th percentile negative 25% adjustment GE TSR performance 50th percentile no adjustment (with proportional adjustment for performance between 40th–75th percentiles)
Why are the total cash and operating margin targets for the 2016 grant lower than the 2015 grant?
The difference in threshold/target performance levels between the 2015 and 2016 grants is due primarily to differences in how we calculate the metrics, as shown below:
Option Exercises and Stock Vested Table.
The table below shows the number of shares the named executives acquired and the values they realized upon the exercise of options and the vesting of RSUs and PSUs during 2016. Values are shown before payment of any applicable withholding taxes or brokerage commissions.
STOCK AWARDS. For Messrs. Immelt and Rice, includes partial vesting of certain awards for U. S. Federal Insurance Contributions Act (FICA) tax purposes. For Mr. Sherin, includes accelerated vesting of certain awards pursuant to his retirement agreement. Receipt of a portion of these awards ($6,054,019) is subject to a six-month delay under applicable U. S. federal income tax regulations.
Compensação diferida.
The company has offered both a deferred bonus program and, from time to time, a deferred salary program. These deferral programs are intended to promote retention by providing a long-term savings opportunity on a tax-efficient basis. The deferred salary program is viewed as a strong retention tool because executives generally must remain with the company for at least five years after deferral to receive any interest on deferred balances. In addition, because the deferral programs are unfunded and deferred payments are satisfied from the company’s general assets, they provide an incentive for the company’s executives to minimize risks that could jeopardize the long-term financial health of the company.
Bonus Deferrals.
ELIGIBILITY AND DEFERRAL OPTIONS. Employees in our executive band and above, including the named executives, can elect to defer all or a portion of their bonus payments into the deferral options shown below. Participants may change their election among these options four times per year.
TIME AND FORM OF PAYMENT. Participants can elect to receive their deferred compensation balance upon termination of employment either in a lump sum or in 10 to 20 annual installments.
Salary Deferrals.
ELIGIBILITY . We periodically offer eligible employees in our executive band and above the opportunity to defer their salary payments (the last such plan was offered in 2010 for 2011 salary). Individuals who are named executives at the time a deferred salary program is initiated are not eligible to participate.
INTEREST INCOME. These programs provide accrued interest on deferred amounts (including an above-market interest rate as defined by the SEC) ranging from 6% to 14% compounded annually. A participant who terminates employment before the end of the five-year vesting period will receive a payout of the deferred amount but will forfeit the accrued interest (with exceptions for events such as retirement, death and disability).
TIME AND FORM OF PAYMENT . Our deferred salary programs have required participants to elect, before the salary was deferred, to receive deferred amounts either in a lump sum or in 10 to 20 annual installments.
The company makes all decisions regarding the measures for calculating interest or other earnings on deferred bonuses and salary. The named executives cannot withdraw any amounts from their deferred compensation balances until they either leave or retire from GE.
Deferred Compensation Table.
The table below — also known as the Nonqualified Deferred Compensation Table — shows amounts credited to the named executives’ accounts under nonqualified deferred compensation plans and plan balances as of December 31, 2016. For 2016, the company did not make any matching contributions into these plans. In addition, no withdrawals or distributions were made in 2016.
EXECUTIVE CONTRIBUTIONS IN 2016. Amounts represent compensation deferred during 2016. They do not include any amounts reported as part of 2016 compensation in the Summary Compensation Table above, which were credited to the named executive’s deferred account, if any, in 2017.
AGGREGATE EARNINGS IN 2016. Reflects earnings on each type of deferred compensation listed in this section that were deposited into the named executive’s deferred compensation account during 2016. The earnings on deferred bonus payments may be positive or negative, depending on the named executive’s investment choice, and are calculated based on: (1) the total number of deferred units in the account multiplied by the GE stock or S&P 500 Index price as of December 31, 2016; minus (2) that amount as of December 31, 2015; minus (3) any named executive contributions during the year. The earnings on the deferred salary programs are calculated based on the total amount of interest earned. See the Summary Compensation Table above for the above-market portion of those interest earnings in 2016.
AGGREGATE BALANCE AT 12/31/16. The fiscal year-end balances reported in the table above include the following amounts that were previously reported in the Summary Compensation Table as 2014 and 2015 compensation:
Pension Benefits.
The company provides retirement benefits to the named executives under the same GE Pension Plan and GE Supplementary Pension Plan in which other eligible employees participate. The Pension Plan is a funded, tax-qualified plan. The Supplementary Pension Plan, which increases retirement benefits above amounts available under the Pension Plan, is an unfunded, unsecured obligation of the company and is not qualified for tax purposes. Because participants generally forfeit any benefits under this plan if they leave the company before age 60, we believe it is a strong retention tool that significantly reduces departures of high-performing executives and greatly enhances the caliber of the company’s executive workforce. In addition, because the Supplementary Pension Plan is unfunded and benefit payments are satisfied from the company’s general assets, it provides an incentive for executives to minimize risks that could jeopardize the long-term financial health of GE.
GE Pension Plan.
ELIGIBILITY AND VESTING. The GE Pension Plan is a broad-based retirement program that is closed to new participants. Eligible employees vest in the plan after five years of qualifying service. The plan also requires employee contributions, which vest immediately.
BENEFIT FORMULA. For the named executives, the plan provides benefits based primarily on a formula that takes into account their earnings for each fiscal year. Since 1989, this formula has provided an annual benefit accrual equal to 1.45% of a named executive’s earnings for the year up to covered compensation and 1.9% of his or her earnings for the year in excess of covered compensation. “Covered compensation” was $50,000 for 2016 and has varied over the years based in part on changes in the Social Security taxable wage base. For purposes of the formula, annual earnings include base salary and up to one-half of bonus payments, but may not exceed an IRS-prescribed limit applicable to tax-qualified plans ($265,000 for 2016). As a result, the maximum incremental annual benefit a named executive could have earned for service in 2016 was $4,810. Over the years, we have made special one-time adjustments to this plan that increased eligible participants’ pensions, but we did not make any such adjustment in 2016.
TIME AND FORM OF PAYMENT. The accumulated benefit an employee earns over his or her career is payable after retirement on a monthly basis for life with a guaranteed minimum benefit of five years. The normal retirement age as defined in this plan is 65; however, employees who began working at GE prior to 2005, including the named executives, may retire at age 60 without any reduction in benefits. In addition, the plan provides for Social Security supplements and spousal joint and survivor annuity options.
TAX CODE LIMITATIONS ON BENEFITS. The tax code limits the benefits payable under the GE Pension Plan. For 2016, the maximum single life annuity a named executive could have received under these limits was $210,000 per year. This ceiling is actuarially adjusted in accordance with IRS rules to reflect employee contributions, actual forms of distribution and actual retirement dates.
GE Supplementary Pension Plan.
ELEGIBILIDADE. The GE Supplementary Pension Plan is an unfunded and non-tax-qualified retirement program that is offered to eligible employees in the executive band and above, including the named executives, to provide retirement benefits above amounts available under our other pension programs. The portion of the plan providing the benefits described below has been closed to new participants.
BENEFIT FORMULA. A named executive’s annual supplementary pension, when combined with certain amounts payable under the company’s other pension programs and Social Security, will equal 1.75% of his or her “earnings credited for retirement benefits” multiplied by the number of years of credited service, up to a maximum of 60% of such earnings credited for retirement benefits. The “earnings credited for retirement benefits” are the named executive’s average annual compensation (base salary and bonus) for the highest 36 consecutive months out of the last 120 months prior to retirement.
TIME AND FORM OF PAYMENT. Employees are generally not eligible for benefits under the Supplementary Pension Plan if they leave the company before age 60. The normal retirement age under this plan is 65; however, employees who began working at GE prior to 2005, including the named executives, may retire at age 60 without any reduction in benefits. The plan provides for spousal joint and survivor annuities for the named executives. Benefits under this plan would be available to the named executives only as monthly payments and could not be received in a lump sum.
GE Excess Benefits Plan.
ELEGIBILIDADE. The GE Excess Benefits Plan is an unfunded and non-tax-qualified retirement program that is offered to employees whose benefits under the GE Pension Plan are limited by certain tax code provisions. There were no accruals for named executives under this plan in 2016, and the company expects only insignificant accruals, if any, under this plan in future years.
BENEFIT FORMULA. Benefits payable under this plan are equal to the amount that would be payable under the terms of the GE Pension Plan disregarding the limitations imposed by certain tax code provisions minus the amount actually payable under the GE Pension Plan taking those limitations into account.
TIME AND FORM OF PAYMENT. Benefits for the named executives are generally payable at the same time and in the same manner as their GE Pension Plan benefits.
Pension Benefits Table.
The table below shows the present value of the accumulated benefit at year-end for the named executives under each plan, as calculated based upon the assumptions described below. Although SEC rules require us to show this present value, the named executives are not entitled to receive these amounts in a lump sum. None of the named executives received a payment under these plans in 2016.
*Excludes early retirement allowance payments valued at $7,191,154 (see “Early Retirement Agreement with Mr. Sherin” below).
PRESENT VALUE OF ACCUMULATED BENEFIT. The accumulated benefit is based on years of service and earnings (base salary and bonus, as described above) considered by the plans for the period through December 31, 2016. It also includes the value of contributions made by the named executives throughout their careers. For purposes of calculating the present value, we assume that all named executives who are not yet 60 (except for Mr. Sherin, who retired before age 60) will remain in service until age 60, the age at which they may retire without any reduction in benefits. We also assume that benefits are payable under the available forms of annuity consistent with the assumptions described in the Postretirement Benefit Plans notes in GE’s financial statements in our 2016 annual report on Form 10-K, including the statutory discount rate assumption of 4.11%. The postretirement mortality assumption used for present value calculations is the RP-2014 mortality table, adjusted for GE’s experience and factoring in projected generational improvements.
Potential Termination Payments.
In this section, we describe and quantify certain compensation that would have been payable under existing compensation plans and arrangements had a named executive’s employment terminated on December 31, 2016. For this hypothetical calculation, we have used each executive’s compensation and service levels as of this date (and, where applicable, GE’s closing stock price on this date). Since many factors (e. g., the time of year when the event occurs, GE’s stock price and the executive’s age) could affect the nature and amount of benefits a named executive could potentially receive, any amounts paid or distributed upon a future termination may be different from those shown in the tables below. The amounts shown are in addition to benefits generally available to salaried employees who joined the company before 2005, such as distributions under the Retirement Savings Plan, subsidized retiree medical benefits and disability benefits.
EARLY RETIREMENT AGREEMENT WITH MR. SHERIN. Mr. Sherin retired on December 31, 2016 after a 35-year career with GE. In connection with this, we entered into an early retirement agreement with Mr. Sherin pursuant to which, subject to a 12-month non-compete, Mr. Sherin will receive: (1) his 2016 annual cash bonus (as reported in the Summary Compensation Table) and a prorated 2016–2018 LTPA payment, in each case based upon actual company performance and determined in accordance with the company’s normal processes; (2) accelerated vesting (the PSUs remain subject to actual company performance) and up to a 5-year extension of the expiration period for his outstanding equity awards (the value of which is reported in the Summary Compensation Table), consistent with the benefits provided to other employees impacted by the GE Capital exit plan; (3) vesting at age 60 of his accrued benefits under the GE Supplementary Pension Plan (with benefits based on his approximately 35 years of service as of his retirement date); and (4) an early retirement allowance, payable monthly, from his retirement through age 60 (and, for certain amounts, through age 63 2⁄3).
Our Policies on Post-Termination Payments.
NO EMPLOYMENT OR INDIVIDUAL SEVERANCE AGREEMENTS. Our named executives serve at the will of the Board and do not have individual employment, severance or change-of-control agreements. This preserves the Compensation Committee’s flexibility to set the terms of any employment termination based on the particular facts and circumstances.
SHAREOWNER APPROVAL OF SEVERANCE AND DEATH BENEFITS. If the Board were to agree to pay severance or unearned death benefits to a named executive, we would seek shareowner approval. For severance benefits, this policy applies only when the executive’s employment had been terminated before retirement for performance reasons and the value of the proposed severance benefits exceeded 2.99 times the sum of his or her base salary and bonus. See the Board’s Governance Principles (at Helpful Resources) for the full policies.
Equity Awards.
The following table shows the intrinsic value of equity awards that would have vested or become exercisable if the named executive had died, become disabled or retired as of December 31, 2016. Intrinsic value is based upon the company’s stock price (minus the exercise price in the case of stock options). Amounts shown assume the achievement of all applicable performance objectives.
POTENTIAL TERMINATION PAYMENTS TABLE (EQUITY BENEFITS)
DEATH/DISABILITY. Unvested options would vest and remain exercisable until their expiration date. In the case of disability, this applies only to options that have been held for at least one year. Unvested RSUs would become fully vested in some cases, depending on the award terms. PSUs would be earned, subject to the achievement of the performance objectives. For these purposes, “disability” generally means the executive being unable to perform his or her job.
RETIREMENT. Unvested options or RSUs held for at least one year would become fully vested and would remain exercisable until their expiration date. This treatment applies to the named executives either becoming retirement-eligible (reaching the applicable retirement age) or retiring at age 60 or thereafter, depending on the award terms, and provided the award holder has at least five years of service with GE. Messrs. Immelt, Joyce and Rice had reached the applicable retirement age as of December 31, 2016.
Pension Benefits.
“Pension Benefits” above describes the general terms of each pension plan in which the named executives participate, the years of credited service and the present value of their accumulated pension benefit (assuming payment begins at age 60 or, for those named executives age 60 or above, January 1, 2017). The table below shows the pension benefits that would have become payable if the named executives had died, become disabled, voluntarily terminated or retired as of December 31, 2016.
In the event of death before retirement, the named executive’s surviving spouse may receive the following pension benefits:
GE Pension Plan and GE Excess Benefits Plan. Either an annuity, as if the named executive had retired and elected the spousal 50% joint and survivor annuity option prior to death, or an immediate lump-sum payment based on five years of pension distributions, in each case based upon the accrued benefits under these plans. GE Supplementary Pension Plan. A lump-sum payment based on whichever of the following has a higher value: (1) the 50% survivor annuity that the spouse would have received under this plan if the named executive had retired and elected the spousal 50% joint and survivor annuity option prior to death, or (2) five years of pension distributions under this plan.
The amounts payable depend on several factors, including employee contributions and the ages of the named executive and surviving spouse.
In the event a disability occurs before retirement, the named executive may receive an annuity payment of accrued pension benefits, payable immediately.
POTENTIAL TERMINATION PAYMENTS TABLE (PENSION BENEFITS)
LUMP SUM UPON DEATH. Lump sum payable to the surviving spouse.
ANNUAL ANNUITY UPON DEATH. Annuity payable for the life of the surviving spouse. In accordance with his early retirement agreement, in the event of Mr. Sherin’s death prior to age 60, his surviving spouse would receive payments beginning on his 60th birthday based on the 50% joint and survivor annuity option under the pension plans.
ANNUAL ANNUITY UPON DISABILITY. 50% joint and survivor annuity payable to each executive.
ANNUAL ANNUITY UPON VOLUNTARY TERMINATION. 50% joint and survivor annuity payable to each executive at age 60; this does not include any payments under the GE Supplementary Pension Plan because they are forfeited upon voluntary termination before age 60.
ANNUAL ANNUITY UPON RETIREMENT. 50% joint and survivor annuity, except for Mr. Sherin. Mr. Sherin’s amounts reflect his elections under his early retirement allowance, which is valued at $7,191,154 (see “Early Retirement Agreement with Mr. Sherin” above).
Compensação diferida.
The named executives are entitled to receive the amount in their deferred compensation accounts if their employment terminates. Between the termination event and the date that distributions are made, these accounts would continue to increase or decrease in value based on changes in the value of GE Stock Units or S&P 500 Index Units, and to accrue interest income or dividend payments, as applicable. Therefore, amounts received by the named executives would differ from those shown in the Deferred Compensation Table above. See “Deferred Compensation” above for information on the available distribution types under each deferral plan.
Life Insurance Benefits.
For a description of the supplemental life insurance plans that provide coverage to the named executives, see “Life Insurance Premiums” acima. If the named executives had died on December 31, 2016, the survivors of the named executives would have received the following under these arrangements. The company would continue to pay the premiums in the event of a disability until the policy is fully funded.
Other Executive Compensation Practices & Policies.
Roles and Responsibilities in Succession Planning and Compensation.
COMPENSATION COMMITTEE. The committee has primary responsibility for helping the Board develop and evaluate potential candidates for executive positions and for overseeing the development of executive succession plans. As part of this responsibility, the committee oversees the compensation program for the CEO and the other named executives.
MANAGEMENT. Our CEO and our senior vice president, human resources, help the committee administer our executive compensation program. The senior vice president, human resources, also advises the committee on matters such as past compensation, total annual compensation, potential accrued benefits, GE compensation practices and guidelines, company performance, industry compensation practices and competitive market information.
How We Establish Performance Goals and Evaluate Performance.
ESTABLISHING PERFORMANCE GOALS. At the beginning of each year, Mr. Immelt develops the objectives that he believes should be achieved for the company to be successful. He then reviews these objectives with the Compensation Committee for the corollary purpose of establishing how the committee will assess his and the other named executives’ performance, including forming the basis for the performance metrics and strategic goals included in the annual bonus plan. These objectives are derived largely from the company’s annual financial and strategic planning sessions, during which the Board and management conduct in-depth reviews of the company’s growth opportunities and establish goals for the upcoming year. The objectives include quantitative financial measurements as well as qualitative strategic, risk and operational considerations, and are focused on those factors that our CEO and the committee believe create long-term shareowner value.
EVALUATING PERFORMANCE. Mr. Immelt leads the assessment of each named executive’s individual performance against the objectives established for that executive, the company’s overall performance and the performance of the executive’s business or function, and makes an initial compensation recommendation to the Compensation Committee for each executive. In doing so, he solicits the input of, and receives advice and data from, our senior vice president, human resources. Mr. Immelt also reviews and discusses preliminary considerations as to his own compensation with the committee, but does not participate in the final determination of his compensation. The named executives also play no role in their compensation determinations, other than discussing with the CEO their individual performance against predetermined objectives.
Our Policies on Compensation Consultants and Peer Group Comparisons.
STRATEGIC USE OF COMPENSATION CONSULTANTS. From time to time, the Compensation Committee and the company’s human resources function have sought the views of Frederic W. Cook & Co., Inc. (Frederic Cook) about market intelligence on compensation trends and on particular compensation programs designed by our human resources function. For 2016, the Compensation Committee chair and the company’s human resources function consulted with Frederic Cook on market practices related to senior executive compensation. In addition, the Governance Committee and the company’s legal function consulted with Frederic Cook on market practices relating to compensation and benefits for non-employee directors. In addition, the company’s human resource function consulted with Exequity to obtain its views and information on the company’s broad-based 2007 Long-Term Incentive Plan. All of these services were obtained under hourly fee arrangements rather than through a standing engagement.
COMPENSATION CONSULTANT INDEPENDENCE POLICY. Any compensation consultant that advises the Board on executive or director compensation will not at the same time advise the company on any other human resources matter, and the committee has determined that Frederic Cook’s work with the committee, Governance Committee and the company’s human resources function does not raise any conflict of interest.
LIMITED USE OF PEER GROUP COMPARISONS. The Compensation Committee considers executive compensation at the other Dow 30 companies as just one among several factors in setting pay. It does not target a percentile within this group and instead uses the comparative data merely as a reference point in exercising its judgment about compensation types and amounts.
Clawbacks and Other Remedies for Potential Misconduct.
CLAWBACKS. The Board may seek reimbursement from an executive officer if it determines that the officer engaged in conduct that was detrimental to the company and resulted in a material inaccuracy in either our financial statements or in performance metrics that affected the officer’s compensation. If the Board determines that the officer engaged in fraudulent misconduct, it will seek such reimbursement. For more information, see the Board’s Governance Principles (see Helpful Resources).
OTHER REMEDIES. In cases of detrimental misconduct by an executive officer, the Board may also take a range of other actions to remedy the misconduct, prevent its recurrence, and discipline the individual as appropriate, including terminating the individual’s employment. These remedies would be in addition to, and not in lieu of, any actions imposed by law enforcement agencies, regulators or other authorities.
Share Ownership and Equity Grant Policies.
SHARE OWNERSHIP REQUIREMENTS. We require our named executives to own significant amounts of GE stock as shown on the next page. The required amounts are set at multiples of base salary. All named executives are in compliance with our stock ownership requirements. For details on these requirements, see the Compensation Committee’s Key Practices (see Helpful Resources). The named executives’ ownership is shown in the Common Stock & Total Stock-Based Holdings Table on Governance.
STOCK OWNERSHIP REQUIREMENTS.
(multiples of base salary)
for vice chairs.
for senior vice presidents.
HOLDING PERIOD REQUIREMENTS. Our executive officers must also hold for at least one year any net shares of GE stock they receive through stock option exercises.
NO HEDGING. We believe our executive officers and directors should not speculate or hedge their interests in our stock. We therefore prohibit them from entering into any derivative transactions in GE stock, including any short sale, forward, equity swap, option or collar that is based on GE’s stock price.
NO PLEDGING. We prohibit executive officers and directors from pledging GE stock.
NO OPTION BACKDATING OR SPRING-LOADING. The exercise price of each stock option is the closing price of GE stock on the grant date (the date of the Compensation Committee meeting at which equity awards are determined). Board and committee meetings are generally scheduled at least a year in advance and without regard to major company announcements.
NO OPTION REPRICING. We prohibit the repricing of stock options. This includes amending outstanding options to lower their exercise price, substituting new awards with a lower exercise price or executing a cash buyout.
NO UNEARNED DIVIDEND EQUIVALENTS. PSUs, as well as RSUs granted to executive officers after 2013, do not pay dividend equivalents on shares that are not yet owned. Instead, dividend equivalents are accrued during the vesting or performance period and paid out only on shares actually received. For more information, see the Compensation Committee’s Key Practices (see Helpful Resources).
Tax Deductibility of Compensation.
The Internal Revenue Code generally imposes a $1 million limit on the amount that a public company may deduct for compensation paid to the company’s named executives. This limitation does not apply to compensation that meets the tax code requirements for “qualifying performance-based” compensação. With respect to compensation reported in the Summary Compensation Table for 2016 above, annual cash bonus payments as well as PSU, RSU and stock option grants were designed to satisfy the requirements for deductible compensation (but we may pay compensation that does not qualify as deductible). To allow annual bonus payments, LTPA payments and grants of PSUs and RSUs to qualify as deductible, the Compensation Committee established a performance goal (positive net earnings, adjusted to remove the impact under GAAP of unusual events) and the maximum amounts that could be granted to the executive officers (expressed as a percentage of adjusted net earnings). That goal was met for 2016, and the bonus payments and PSU and RSU grant amounts were within the pre-established limits. Because deductibility is determined under a set of standards that may be subject to different interpretations in application, arrangements intended to satisfy the deductibility requirements may subsequently be determined not to be deductible.
Explanation of Non-GAAP Financial Measures and Performance Metrics.
Information on how GE calculates the following metrics:
Industrial segment organic revenue growth (incl. Alstom for Nov. & Dec. of 2015 & 2016), Industrial operating + Verticals EPS, Industrial operating profit, Industrial operating margin, Industrial operating margin, Industrial segment operating margin (ex. Alstom Appliances), Industrial segment gross margin (ex. Alstom), Industrial ROTC, GE Capital Verticals earnings, GE CFOA (ex. deal taxes & pension funding), Free cash flow + dispositions, and Total cash generation,
is disclosed in the supplemental materials on GE’s proxy website (see Helpful Resources) and in the “Supplemental Information” section of GE’s annual report on Form 10-K for 2016. Information on how GE calculates the funding metrics for the annual bonus program as well as the performance metrics for the 2016–2018 LTPA program and 2013–2016 and 2014–2016 PSUs is also disclosed in the supplemental materials on GE’s proxy website.
Caution Concerning Forward-Looking Statements.
This document contains “forward-looking statements” & mdash; that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see the Forward-Looking Statements Information page on our Investor Relations website (see Helpful Resources) as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
Compensation Committee Report.
The Compensation Committee has reviewed the compensation discussion and analysis, and discussed that analysis with management. Based on its review and discussions with management, the committee recommended to the Board that the compensation discussion and analysis be included in the company’s annual report on Form 10-K for 2016 and this proxy statement. This report is provided by the following independent directors, who comprise the committee:
John J. Brennan (Chairman)
Marijn E. Dekkers.
Rochelle B. Lazarus.
Diretor de Compensação.
The compensation program for independent directors is designed to achieve the following goals:
Fairly pay directors for the work required at a company of GE’s size and scope; Align directors’ interests with the long-term interests of GE shareowners; and Be simple, transparent and easy for shareowners to understand.
Compensação anual.
OVERVIEW. Our independent directors receive annual compensation as shown in the table below. There are no additional meeting fees. The lead director and members of our Board committees receive additional compensation due to the workload and broad responsibilities of these positions.
HOW DEFERRED STOCK UNITS WORK. Each DSU is equal in value to a share of GE stock and is fully vested upon grant, but does not have voting rights. To calculate the number of DSUs to be granted, we divide the target value of the DSUs by the average closing price of GE stock for the 20 days preceding and including the grant date. DSUs accumulate quarterly dividend-equivalent payments, which are reinvested into additional DSUs. The DSUs are paid out in cash beginning one year after the director leaves the Board. Directors may elect to take their DSU payments as a lump sum or in payments spread out for up to 10 years.
OTHER COMPENSATION. Our independent directors may also receive the following benefits:
Matching Gifts Program. Independent directors may participate in the GE Foundation’s Matching Gifts Program on the same terms as GE employees. Under this program, the GE Foundation matched for each participant up to $25,000 for 2016 contributions to approved charitable organizations. Charitable Award Program. Each director who joined the Board before 2016 may, upon leaving the Board, designate up to five charitable organizations to share in a $1 million GE contribution. Directors may not choose a private foundation with which they are affiliated. Executive Products and Lighting Program. Independent directors could participate in our Executive Products and Lighting Program on the same basis as our named executives. Under this program, directors could receive up to $30,000 in GE appliances over a three-year period. This program terminated in June 2016 when we sold our Appliances business, but directors can continue to receive light bulbs going forward. Incidental Board Meeting Expenses. The company occasionally provides travel and sponsors activities for spouses or other guests of the directors in connection with Board meetings.
Changes to Director Compensation.
The Governance Committee reviews director compensation annually, assisted periodically by an independent compensation consultant. In 2016, with the advice of Frederic Cook, the Board made the following changes:
Increased the annual retainers by $25,000 for independent directors and by an additional $10,000 for members of the Audit, Governance and Industrial Risk Committees. Commensurately increased directors’ stock ownership requirements. The Board increased the director stock ownership requirement from $500,000 to $550,000 to keep the level at 5X the cash portion of the annual retainer. Established an annual limit for director compensation, which was set at $1,500,000 annually.
Over the past few years, in line with the company’s simplification initiative, the Board has taken several actions to reduce benefits provided to directors, including lowering the maximum annual match under the Matching Gifts Program from $50,000 to $25,000, and closing the Charitable Award Program to new directors.
Director Compensation Table.
This table shows the compensation that each independent director earned for his or her 2016 Board and committee service. Amounts reflect partial-year Board service for Messrs. Cash, Swieringa and Warner, who retired from the Board in April 2016.
CASH FEES. Amount of cash compensation earned in 2016 for Board and committee service.
STOCK AWARDS. Aggregate grant date fair value of DSUs granted in 2016, as calculated in accordance with SEC rules, including amounts that the directors deferred into DSUs in lieu of all or a part of their cash compensation. Grant date fair value is calculated by multiplying the number of DSUs granted by the closing price of GE stock on the grant date, which was $31.79 for March 31, 2016 grants, $31.48 for June 30, 2016 grants, $29.62 for September 30, 2016 grants, and $31.60 for December 31, 2016 grants. The table below shows the cash amounts that the directors deferred into DSUs in 2016 and the number of DSUs accrued as of 2016 fiscal year-end.
ALL OTHER COMPENSATION. The following table provides more information on the type and amount of benefits included in the All Other Compensation column.
Matching gifts. Under the terms of the Matching Gifts Program, contributions made within a calendar year are eligible to be matched if they are reported to GE by April 15 of the following year. Amounts shown in this column reflect all contributions reported to the company in 2016, including 2015 contributions reported to GE by April 2016 and excluding any 2016 contributions that were not reported until 2017. Other benefits. This column includes: (1) the fair market value of products received under the Executive Products and Lighting Program, the appliances portion of which terminated in June 2016; and (2) a $1,000,000 contribution under our legacy Charitable Award Program for each of our retiring directors (Cash, Swieringa and Warner).
No Additional Director Compensation.
Independent directors do not receive any cash incentive compensation, hold deferred compensation balances or receive pension benefits. Since 2003, DSUs have been the only equity incentive compensation awarded to the independent directors; we ceased granting stock options to directors in 2002, and no independent director had stock options outstanding at 2016 fiscal year-end. Directors who are company employees do not receive any compensation for their services as directors.
Share Ownership Requirements for Independent Directors.
All independent directors are required to hold at least $550,000 (5X the cash portion of their annual retainer) worth of GE stock and/or DSUs while serving as GE directors. They have five years to meet this ownership threshold. All directors are in compliance with this requirement.
Director and Officer (D&O) Insurance.
GE provides liability insurance for its directors and officers. The annual cost of this coverage is approximately $7.5 million.
Approval of the GE 2007 Long-Term Incentive Plan, as Amended to Extend the Plan and Increase the Number of Plan Shares.
What are you voting on?
MANAGEMENT PROPOSAL NO. 3.
We are asking shareowners to approve the GE 2007 Long-Term Incentive Plan (Plan), as amended to extend the term of the Plan, increase the number of authorized shares and make other changes.
Why the Board recommends a vote FOR the amended plan.
The purposes of the plan are to:
Encourage selected salaried employees to acquire a proprietary interest in the growth and performance of GE; Generate an increased incentive to contribute to GE’s future success and prosperity, thus enhancing the value of the company; and Enhance the ability of the company to attract and retain exceptionally qualified individuals upon whom the sustained progress, growth and profitability of GE depend.
The amended plan would further these objectives by allowing GE to continue to grant awards under the Plan for another four to five years.
YOUR BOARD RECOMMENDS A VOTE FOR APPROVAL OF THE GE 2007 LONG-TERM INCENTIVE PLAN, AS AMENDED.
Balanced mix of PSUs, RSUs & options for senior officers Long-term vesting with 5 years for options/RSUs, 3 years for PSUs No dividend equivalent payments to executive officers on unearned RSUs/PSUs Share buybacks to offset dilution from equity programs.
Overview of the 2007 LTIP.
On February 10, 2017, the Board adopted, subject to shareowner approval, an amendment to the GE 2007 Long-Term Incentive Plan (Plan) to extend the term of the Plan, which otherwise would terminate at the 2017 annual meeting, and to increase the Plan’s share pool — that is, the number of shares that GE is authorized to issue for awards under the Plan. When shareowners previously approved the Plan at our 2007 and 2012 annual meetings, they authorized the issuance of up to 925 million shares for Plan awards (of which 223.5 million were available for future awards as of December 31, 2016).
If shareowners approve this proposal, the Plan would be amended to:
Authorize GE to issue up to 150 million additional shares for use under the Plan, which would bring the total number of authorized shares to 1,075 million (although 25 million of these shares would come from the reallocation of shares from the Consultant’s Plan to the Plan), of which 373.5 million would be available for new grants after 2016. Extend the term of the Plan by ten years, with the 2027 annual meeting as the end date. Raise the limit on the number of shares available for incentive stock options by 150 million (same as the increase in the share pool). Add non-employee directors as participants under the Plan, bringing the director DSU program under the auspices of the Plan. Establish an annual limit for director compensation (both cash and equity) at $1.5 million per year. Clarify that Plan awards are subject to the company’s clawback policy. Make other, non-substantive changes to the Plan.
How Long We Expect the Share Pool to Last.
We expect that the proposed share pool for new grants under the Plan (i. e., the 373.5 million shares available for grants after 2016), if shareowners approve this proposal, will last four to five years. However, regardless of actual Plan usage, as a matter of good corporate governance, we intend to ask shareowners to reapprove the Plan no later than the 2022 annual meeting. This is consistent with our historical practice of seeking shareowner approval for the Plan every five years.
How the Plan is Designed to Protect Shareowners’ Interests.
The following features of the Plan will continue to protect the interests of our shareowners:
Limits on authorized shares — no evergreen provision. If the amendment to the Plan is approved, the maximum number of shares available for grants of stock options and other stock awards will be 1,075 million, including shares that have been granted since the Plan’s adoption in 2007. Of these shares, no more than 230 million are available for “full value” awards (e. g., RSUs and PSUs). The Plan does not have an “evergreen” característica. Limits on terms of stock options. The maximum terms of each stock option and SAR that can be granted under the Plan is ten years. Limits on share counting. Shares surrendered or withheld for the payment of the exercise price or taxes under stock options or SARs, shares surrendered or withheld for the payment of taxes on RSUs, PSUs and other full value awards, and shares repurchased in the open market with the proceeds of an option exercise, may not again be made available for issuance under the Plan. No stock option repricing. The Plan prohibits the repricing of “underwater” options and SARs, whether by amending an existing award, substituting a new award at a lower price or executing a cash buyout. No discounted stock option grants. The Plan prohibits granting stock options or SARs with an exercise price less than the fair market value of GE stock on the date of grant. No automatic change-of-control benefits. The Plan does not provide any automatic benefits upon a change of control or any excise tax gross-ups.
Key Data About Our Grant Practices.
Burn rate measures how rapidly we are using the Plan’s share pool. We measure burn rate on both a gross basis (does not take into account shares returned to the share pool due to forfeiture) and a net basis (takes into account shares returned to the share pool due to forfeiture), calculated as follows:
(total shares granted) (Weighted average GE shares outstanding (undiluted)) NET BASIS.
(total shares granted) — (shares returned to the share pool) (Weighted average GE shares outstanding (undiluted))
GE COMPARES FAVORABLY TO DOW 30. Over the last three years, our gross burn rate averaged 0.6%, compared to 0.9% for the Dow 30, and our net burn rate averaged 0.5%, compared to 0.7% for the Dow 30.* See the Historical GE Data table for more information.
GE PERSPECTIVE. The committee manages burn rate by considering the aggregate value of our annual equity grants in the context of the company’s stock price and other compensation actions. Over the last five years, the committee has twice “reset” overall grant levels (i. e., reducing the amount) in light of these considerations.
Overhang measures the potential shareowner dilution from outstanding equity awards and shares available for grant. We use a “simple overhang” measurement, calculated as follows:
(awards outstanding) + (shares available for grant) (Weighted average GE shares outstanding (undiluted))
GE COMPARES FAVORABLY TO DOW 30. Over the last three years, our overhang averaged 7.8%, compared to 10.5% for the Dow 30.* See the Historical GE Data table for more information. If this proposal is approved, our potential dilution would increase from 7.6% in 2016 to 9.2%.
GE PERSPECTIVE. The company manages shareowner dilution from equity compensation through its buyback program. In 2016, the company repurchased $22 billion of GE shares, approximately $1.9 billion of which was to offset dilution from the Plan.
Concentration Ratio.
Concentration ratio measures the percentage of Plan awards granted to our named executives and is a useful indicator of whether a plan is broad-based. We calculate concentration ratio as follows:
(shares granted to named executives) (total shares granted)
GE COMPARES FAVORABLY TO DOW 30. Over the last three years, our concentration ratio averaged 4.2%, compared to 7.6% for the Dow 30.* See the Historical GE Data table for more information.
GE PERSPECTIVE. The committee believes that it is important for a broad group of GE executives and other employees to receive equity awards so that their interests are aligned with shareowners. In 2016, more than 5,000 GE employees received awards under the Plan.
*Represents the median of the Dow 30 companies’ average over the three-year period 2013–2015 (the last year for which data is available).
Historical GE Data.
*See “PSUs” above for a description of the performance metrics for the PSUs.
** Basic weighted average.
Equity Compensation Plan Information.
The following table provides information regarding the total share authorization under the Plan if this proposal is approved.
The following table provides information regarding outstanding equity awards and shares available for future issuance under all of GE’s equity plans. As required by SEC rules, it does not give effect to the proposed amendment to the Plan.
Frequently Asked Questions About the Plan.
This summary is qualified by reference to the complete text of the Plan, which can be found in Appendix A to this proxy statement.
Who can participate in the Plan?
All salaried employees of GE and its affiliates — approximately 185,000 employees in total — are eligible to participate in the Plan, along with the company’s 17 non-employee directors (assuming Dr. Lavizzo-Mourey is elected).
Who administers the Plan?
GENERALLY. The Plan is administered by the Compensation Committee, an independent committee of the Board. The committee has the authority to make any determination or take any action that it deems necessary or desirable to administer the Plan, and also has the sole discretion to interpret the Plan and all award agreements. With limited exceptions, the committee can delegate its authority under the Plan to the committee chairman, a subcommittee or to GE officers or managers.
AS IT RELATES TO DIRECTOR COMPENSATION. If this proposal is approved, the Governance Committee will administer the Plan as it relates to director compensation.
How many shares are available for Plan awards?
If this proposal is approved, a total of 1,075 million shares will have been authorized for issuance under the Plan (including 25 million shares that were reallocated from the Consultant’s Plan), of which 701.5 million have been granted as of December 31, 2016. Shares delivered pursuant to an award may consist of authorized and unissued shares or treasury shares.
& middot; WHAT REDUCES THE SHARE POOL. Awards settled in shares and dividend equivalents denominated in shares.
& middot; WHAT DOES NOT REDUCE THE SHARE POOL. Awards made upon the assumption of or in substitution for outstanding grants made by a company that we acquire and awards settled in cash.
& middot; WHICH SHARES CAN RETURN TO THE SHARE POOL. Shares covered by an award that is terminated or forfeited because payout conditions are not met.
& middot; WHICH SHARES CANNOT RETURN TO THE SHARE POOL. Shares surrendered to pay the exercise price or withholding taxes for stock options or SARs, shares repurchased in the open market with the proceeds of an option exercise, shares that were subject to an option or stock-settled SAR that were not issued upon its net settlement, and shares withheld to pay withholding taxes on RSUs, PSUs and other full value awards.
The last sales price of GE’s common shares, $0.06 par value, on February 10, 2017 was $29.72 per share, as reported on the NYSE.
What kind of awards can the committee grant under the Plan?
STOCK OPTIONS AND SARs. The maximum term for either stock options or SARs is ten years. Options may be either nonqualified stock options or incentive stock options. The committee will establish the vesting schedule and the method for paying the exercise price of these awards.
RESTRICTED STOCK AND RSUs. The committee will establish the applicable restrictions (including limitations on voting and dividend rights) and vesting schedule of these awards.
PERFORMANCE AWARDS. These awards may be denominated in either cash or shares, and are subject to the achievement of performance goals over set performance periods, as established by the committee.
OTHER STOCK-BASED AWARDS. The committee may grant other stock-based awards, including DSUs, that are valued by reference to or denominated or payable in shares, under such terms as it determines.
In addition, the committee will determine (1) whether an award includes dividends or dividend equivalents (other than stock options or SARs); (2) what happens if a participant terminates employment; and (3) whether shares of GE stock issuable under an award are subject to additional restrictions. Awards generally are not transferable.
Are there minimum vesting periods for Plan awards?
The Plan does not have minimum vesting periods for Plan awards. However, the committee generally believes that options and RSUs should have vesting periods of at least five years (absent compelling recruitment and retention considerations) and PSUs should have performance periods of at least three years. Consistent with this, over the last three years, more than 95% of the awards granted under the Plan met these conditions.
Are Plan awards subject to a clawback policy?
Plan awards granted to executive officers and directors are subject to the company’s clawback policy (see “Clawbacks and Other Remedies for Potential Misconduct” above).
What are the per-person award limits?
Subject to any adjustments that the committee makes (as described below), the Plan limits the number of shares that can be granted to an individual in any three-year period as follows:
In addition, if this proposal is approved, there will be an annual limit on director compensation set at $1,500,000 per director. This would include awards granted under the Plan as well as cash or other compensation paid by the company with respect to service as a director. In certain circumstances, the committee may make an exception and grant compensation above this limit (up to an additional $1,000,000). For example, this exception would permit awards under the company's Charitable Award Program (which has been closed to new directors.)
What adjustments can the committee make under the Plan?
ANTI-DILUTION ADJUSTMENTS. In the event of certain corporate transactions affecting GE’s outstanding common shares — ​such as a dividend, recapitalization, stock split, merger, consolidation, split-up, spin-off, or exchange of shares — ​the committee will make adjustments as it deems appropriate to prevent dilution or enlargement of Plan benefits. This could include changes to the number and type of shares to be issued under the Plan and outstanding awards, the exercise price of outstanding awards, and Plan and per-person limits on the number of shares that can be granted.
PERFORMANCE CRITERIA ADJUSTMENTS. The committee may adjust performance award criteria in recognition of unusual or infrequently recurring events affecting GE or its financial statements or changes in applicable laws, regulations, or accounting principles.
ACQUISITION-RELATED ADJUSTMENTS. The committee may also adjust award terms in connection with business acquisitions in which GE assumes outstanding employee awards or the right to make future awards.
What’s the duration of the Plan?
The Plan became effective on the date of our 2007 annual meeting. If this proposal is approved, the Plan will be extended for an additional ten years, such that no award may be granted under the Plan after the date of our 2027 annual meeting.
How can the Plan or awards be amended?
AMENDMENTS TO THE PLAN. The Board may amend, suspend or terminate the Plan, but will seek shareowner approval of any amendment that would:
& middot; Increase the number of authorized shares under the Plan (except in connection with anti-dilution adjustments as discussed above);
& middot; Permit underwater stock options or SARs to be repriced, replaced or exchanged; ou.
& middot; Otherwise be considered a material amendment under NYSE rules.
AMENDMENTS TO AWARDS. The committee may waive award conditions or amend or terminate awards, but may not impair the rights of the award holder without his or her consent.
Other Information About the Plan.
Summary of U. S. Federal Income Tax Consequences.
The following summary of tax consequences to GE and to Plan participants is intended to be used solely by shareowners in considering how to vote on this proposal and not as tax guidance to participants in the Plan. It relates only to federal income tax and does not address state, local or foreign income tax rules or other U. S. tax provisions, such as estate or gift taxes. Different tax rules may apply to specific participants and transactions under the Plan, particularly in jurisdictions outside the United States. In addition, this summary is as of the date of this proxy statement; federal income tax laws and regulations are frequently revised and may be changed again at any time. Therefore, each recipient is urged to consult a tax advisor before exercising any award or before disposing of any shares acquired under the Plan.
STOCK OPTIONS AND SARs. The grant of an option or SAR will create no tax consequences for the participant or the company. A participant will have no taxable income upon exercise of an incentive stock option, except that the alternative minimum tax may apply. Upon exercise of an option other than an incentive stock option, a participant generally must recognize ordinary income equal to the fair market value of the shares acquired minus the exercise price. When disposing of shares acquired by exercise of an incentive stock option before the end of the applicable incentive stock option holding periods, the participant generally must recognize ordinary income equal to the lesser of (1) the fair market value of the shares at the date of exercise minus the exercise price or (2) the amount realized upon the disposition of the shares minus the exercise price. Otherwise, a participant’s disposition of shares acquired upon the exercise of an option (including an incentive stock option for which the incentive stock option holding periods are met) generally will result in only capital gain or loss.
OTHER AWARDS. Other awards under the Plan generally will result in ordinary income to the participant at the later of the time of delivery of cash, shares, or other awards, or the time that either the risk of forfeiture or restriction on transferability lapses on previously delivered cash, shares or other awards.
COMPANY DEDUCTION. Except as discussed below, the company is generally entitled to a tax deduction equal to the amount recognized as ordinary income by the participant in connection with options, SARs or other awards, but not for amounts the participant recognizes as capital gain. Thus, the company will not be entitled to any tax deduction with respect to an incentive stock option if the participant holds the shares for the incentive stock option holding periods.
IMPACT OF SECTION 162(m) DEDUCTION LIMITATION. Section 162(m) generally allows deductions without limit for compensation that qualifies as performance based. GE intends that options and SARs granted under the Plan will continue to qualify as performance-based compensation not subject to a deductibility cap (based on our shareowners’ original approval of the Plan), as will RSUs and performance awards if shareowners approve the material terms of the performance goals described under “Management Proposal No. 4 — Approval of the Material Terms of Senior Officer Performance Goals” on Shareowner Proposals. However, a number of requirements must be met in order for particular compensation to so qualify, so there can be no assurance that these types of compensation under the Plan will be fully deductible under all circumstances. In addition, other types of compensation provided under the Plan may not qualify as performance-based compensation under Section 162(m) and therefore may not be deductible.
Plan Benefits.
NEW PLAN BENEFITS. Awards granted under the Plan are within the discretion of the committee. As the committee has not determined future awards or who might receive them, the benefits that will be provided under the Plan are not currently determinable.
EXISTING PLAN BENEFITS. The following table contains information with respect to options and other awards previously granted under the Plan as of December 31, 2016. Until this proposal is approved, non‑employee directors cannot participate in the Plan.
APPROVAL OF THE MATERIAL TERMS OF SENIOR OFFICER PERFORMANCE GOALS.
What are you voting on?
MANAGEMENT PROPOSAL NO. 4.
At the 2012 annual meeting, shareowners approved the material terms of performance goals to be used by the Compensation Committee for awarding certain compensation to executives until the date of the 2017 annual meeting. The Board is now requesting that shareowners reapprove the material terms of the performance goals so GE can continue to have a shareowner-approved arrangement under which certain compensation awarded to executives until the date of the 2022 annual meeting may qualify as performance-based compensation for purposes of Section 162(m) of the Internal Revenue Code.
Why are we asking you to vote?
Section 162(m) imposes a $1 million limit on the amount that a public company may deduct for compensation paid to the company’s CEO or any of the company’s three other most highly compensated executive officers (other than the CFO) who are employed as of the end of the year. This limitation does not apply to compensation that meets the requirements under Section 162(m) for “qualifying performance-based” compensação. One of the requirements for compensation to qualify is that the material terms of the performance goals for such compensation be approved by shareowners every five years.
YOUR BOARD RECOMMENDS A VOTE FOR APPROVAL OF THE MATIERAL TERMS OF SENIOR OFFICER PERFORMANCE GOALS.
Material Terms of the Performance Goals.
For purposes of Section 162(m), the material terms of the performance goals include the following:
which employees would be subject to the goals; the business measurements on which the performance goals would be based; and the formula that would be used to calculate the maximum amount of compensation that can be paid to an employee under the arrangement.
Each of these aspects is discussed below, and shareowner approval of this proposal constitutes re-approval of each of these aspects for purposes of Section 162(m).
Employees Covered.
The company’s executive officers (those employees who are required to file reports under Section 16 of the Exchange Act) would be subject to the performance goals described in this proposal. Although Section 162(m) only limits deductibility for compensation paid to a sub-set of this group, we may apply the performance goals to all executive officers in the event that any of them becomes a covered employee under Section 162(m).
Business Measurements.
The Compensation Committee expects to continue to use annual net earnings as determined under GAAP, adjusted to remove the effect under GAAP of unusual events (adjusted net earnings), as the basis for payment of annual bonuses and LTPAs as well as grants of RSUs (including PSUs).
COMMITTEE AUTHORITY TO MEASURE PERFORMANCE GOALS. The committee may establish performance goals that are measured either individually, alternatively or in any combination, are applied to either the company as a whole or to a business unit or related company, and are measured either annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, to a previous year’s results or to a designated comparison group, in each case as specified by the committee in the award.
COMMITTEE AUTHORITY TO ADJUST PERFORMANCE GOALS. The committee may adjust the performance goals to remove the effect of charges for restructurings, discontinued operations and all items of gain, loss or expense determined to be unusual in nature or infrequent in occurrence, related to the disposal of a segment or a business, or related to a change in accounting principle or otherwise.
Per-Person Maximum Amounts.
The maximum amounts granted (in the case of RSUs and PSUs) or payable (in the case of annual bonuses and LTPAs) to any senior officer under each performance goal are:
The committee has established business measurements and maximum amounts that it considers appropriate in light of foreseeable business conditions. If approved by shareowners, this proposal would not limit GE’s right to condition payment of annual bonuses, RSUs or LTPAs on achievement of additional quantitative or qualitative performance goals or to award or pay other or additional forms of compensation (including, but not limited to, salary, other incentive-based cash compensation or other stock-based awards under the Plan). These other forms of compensation may be paid regardless of whether the performance goals described in this proposal are achieved in any future year, and whether or not payment of such other forms of compensation would be tax deductible, but will be designed so as not to affect the deductibility of arrangements intended to qualify as performance-based compensation under Section 162(m). However, there can be no guarantee that amounts payable under these programs and awards will be treated as qualified performance-based compensation under Section 162(m).
If you hold your shares directly with GE or in the GE RSP:
If you hold your shares through a bank or a broker:

General Electric Company Former And Current Employee Investigation.
If you are a former or current employee or are a member of any of General Electric Company (NYSE: GE) investment plans or profit sharing retirement plans and purchased or held General Electric stock (NYSE: GE) in one of those plans during the periods January 23, 2009 to February 27, 2009.or have information relating to this investigation, you should contact the Shareholders Foundation, Inc. immediately!
According to a press release there is currently an ongoing investigation on behalf of former and current employees of General Electric Company (NYSE: GE) concerning potential Employee Retirement Income Security Act (“ERISA”) Breach of Fiduciary Duty.
General Electric Company (NYSE: GE) has been accused of securities fraud and according to a press release under ERISA employees (former and current) of General Electric Company (NYSE: GE) may be eligible to file a ERISA complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them. The Fiduciary duty refers to a company’s responsibility to the people who invest in it and if an employer puts the company’s interest ahead of the investors’, it has broken its fiduciary duty., so the investigation. ERISA, so the press release, is a federal law that sets minimum standards for pension and health plans set up by private businesses and ERISA was designed to protect people who participate in employee benefit plans, including employees with stock options in a company.
On Wednesday March 3, 2009 an investor in General Electric Company (NYSE: GE) has filed a proposed securities class action lawsuit on behalf of purchasers of the common stock of General Electric Company (NYSE: GE) during the period January 23, 2009 through February 27, 2009, in United States District Court for the Southern District of New York against General Electric Company over alleged violations of Federal Securities Laws. According to the complaint the plaintiff alleges that on January 23, 2009, GE’s Chairman and CEO, Jeffrey Immelt, stated unequivocally that General Electric Company (“GE”) would maintain its quarterly $.31 per share dividend, having sufficient cash on hand and cash flow to achieve that goal. Then on February 27, 2009, GE suddenly announced it was cutting the dividend to $.10 per share and on the first trading day after the dividend reduction announcement, GE shares fell from $8.51 per share the previous trading day to close at $7.60 per share. Since then the shares have continued to decline, currently trading at $6.30 per share, an almost 30% decrease. The plaintiff alleges that between January 23, 2009 and February 27, 2009 Jeffrey Immelt sold over 52,000 shares of GE stock at $11.10 per share and other officers of GE sold over 380,000 shares at that same price. The plaintiff accues that Jeffrey Immelt then repurchased 50,000 shares after the announcement at between $7.51 and $8.30 per share and as a result, GE’s Chairman and CEO and the other officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements or knowingly or recklessly failing to know of those statements, sold GE shares at inflated prices based on those statements.
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