GE Didn't Pay Cash Bonuses to CEO, Top Executives in 2017

Postado Março 13, 2018

Flannery earned USD1.6 million in salary in 2016 when he was CEO of the GE Healthcare division.

Flannery, Immelt's replacement, hasn't fared as well.

Immelt will still receive $8.1 million in salary, pension and "other" compensation for his work in 2017. The remaining $3.37 million reflected a change in the value of his pension and deferred compensation.

Given that GE was the worst performing stock on the Dow Jones past year - plunging 45% and losing US$125bn from its market value - the move to slash bonus payouts is perhaps not surprising.

General Electric Co. didn't pay a cash bonus last year to its top executives, which it said was the first time in the company's 125-year history.

The exception was David Joyce, head of GE's aviation business, who received about $5.2 million.

Flannery, 56, the former head of GE Healthcare who took over as CEO on August 1, got $9 million for 2017, including $1.74 million in salary, stock options valued at $2.08 million and a $3.26 million adjustment to the value of his pension and deferred compensation.

But the 55-year-old, along with all but one of his fellow executives, won't be taking home a bonus this time around. Joyce received a cash bonus of USD1.4 million and total compensation of USD5.2 million in 2017, less than half of what he received the year before. The disclosure is part of a broader federal rule change requiring public companies to reveal how CEO compensation stacks up against that of the company's employees.

GE is also overhauling its board, shrinking to 12 directors from as many as 18, while adding several new members such as former Danaher Corp.

Former CFO Jeff Bornstein, who stepped down at the end of 2017, received $6.9 million, excluding $7.7 million of restricted stock units that were canceled. Former vice chairs Beth Comstock and John Rice, who also left the company in recent months, received $9.03 million and $7.88 million, respectively.