(Bloomberg)- General Electric CEO Larry Calpe abandoned most of his salary and all of his bonuses last year, but still earned a total of $ 73.2 million. Most of this is due to potential stock payments related to the company’s future performance.
Last year’s Calpe salary package included a $ 72.1 million worth of stock incentives, GE said Thursday. Power of attorney.. To make money, he needs to guide jet engine, medical device, and power equipment manufacturers to specific goals over the years.
Last year, Calpe earned about $ 650,000 before the coronavirus pandemic caused an unprecedented travel collapse and disrupted the company’s aviation sector. In March 2020, he abandoned the remaining $ 2.5 million base salary as GE announced plans to reduce employment in the unit. He also voluntarily gave up the bonus last year, the agent said, but earned $ 463,799 in pensions and deferred compensation and nearly $ 20,000 in other payments.
Culp’s wage package was the same as the Boeing counterpart’s wage package. Boeing is a key customer of GE and has been hit hard by the slump in aviation. Like Calhoun, Boeing CEO Dave Calhoun has abandoned most of his salary and all of his bonuses. Calhoun pocketed a perk similar to $ 269,321, but his reward was important If he continued to work and Boeing achieved a particular goal, he was $ 21 million, including the profits he could get from the stock award.
The Covid-19 crisis has helped GE save more than $ 2 billion in costs and more than $ 3 billion in cash. The company’s most profitable unit, the jet engine division, before the pandemic, was borne by the labor force in these efforts. Reduction 25%, or 13,000 positions. GE Aviation boss John Slattery warned in November that more jobs would be lost in the next 18 months.
Last year, GE cut about 31,000 jobs through a pandemic restructuring and other business reviews. As a result, the total number of employees at the end of 2020 was about 174,000, a decrease of 15% from the previous year.
In August, GE’s board extended Calpe’s contract for two years until 2024, basically Halved The stock price target he needs to qualify for $ 232 million worth of stock-based wages by the end of his tenure.
This change came after GE’s share price plummeted to its lowest level since 1991.Stock prices recovered in the second half, and Calpe get a qualification About the first payment threshold under that plan.
GE continues to seesaw in the equity market this year, up 30% until March 9. However, shares have fallen 12% in the last two days after the Boston-based company revealed. plans It sold its aircraft leasing business to Aircap Holdings NV and repeated financial forecasts that fell short of analysts’ expectations.
General Electric CEO Acquires $ 73 Million Shares After Exempting Salary
https://www.bloombergquint.com/business/ge-ceo-gets-73-million-in-stock-fueled-pay-after-waiving-salary General Electric CEO Acquires $ 73 Million Shares After Exempting Salary