GE board extends Culp’s contract by two years
The board of General Electric Co. has extended CEO Larry Culp’s contract by two years as his turnaround efforts have run into a global pandemic.
Image source: GE
Boston, Massachusetts, USA: The board of General Electric Co. has extended CEO Larry Culp’s contract by two years as his turnaround efforts have run into a global pandemic.
The extension brings his contract through August 2024, with the option to extend it again by one year. The board also revised an equity grant that would allow Culp to pull in over $200 M when he steps down, according to a regulatory filing from the company.
“The GE Board extended Larry Culp’s employment agreement over a longer period and replaced his performance incentive in light of the current market environment,” said Tom Horton, GE’s lead director and chairman of the board’s compensation committee. in a statement. “Larry’s compensation remains overwhelmingly tied to producing results for shareholders with nearly 90 % of his annual pay at risk. Larry has made significant progress in transforming GE’s operations and culture and is the right leader to drive GE’s long-term strategy to create a stronger and more valuable company for shareholders and employees.”
Culp’s contract extension, in addition to the equity revision, is an indication of the board’s confidence in the chief executive even as the pandemic hammers the company. In July, GE reported revenue falling by 24 % year over year, and the company lost more than $2.1 B during the second quarter.
Source: Biz Journals