Larry Culp's employment contract guarantees it.
GE plans to split the conglomerate into three companies focused on aviation, healthcare and energy. We can’t know the ultimate outcome of such a split, but there is one absolute certainty: CEO Larry Culp will have extraordinary financial gains.
Culp will be awarded between 4.6 million shares and 13.9 million shares, with vesting based on whether GE’s highest average closing price for any 30 consecutive trading days between Aug. 18, 2020 and Aug. 17, 2024 hits specific trading values, with a threshold, target and maximum payments. SOC Investment Group, which works with pension funds at four unions and was then known at CtW Group, argued in a letter ahead of the 2021 annual meeting that Culp’s award could be worth “a staggering $232.5 million at maximum. Astonishingly, the threshold performance hurdle is 12% lower than the stock price when Mr. Culp was hired” in October 2018.
Whether GE’s plans to split into three companies will be a change in control may depend in part on whether “more than 50% of the surviving entity is controlled by the shareholders immediately prior to such event, in substantially the same proportions as their ownership immediately prior to the event.”
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GE breakup is common sense, at least in theoryLarry Culp has described his management style as chief executive of General Electric as “common sense, vigorously applied.” His plan to break the company into three listed parts, unveiled on Tuesday, looks like common sense, belatedly applied.
Read more »
‘The End of the GE We Knew’: Breakup Turns a Page in Modern Business HistoryCEO Larry Culp resisted splitting up the company that began the 21st century as the most valuable conglomerate in America.
Read more »
Vivendi CEO Wants to “Create a Kind of European Disney”Arnaud de Puyfontaine's comments suggested a company with a hand in activities across the media and entertainment space that can help or cross-promote each other.
Read more »
Former Starbucks CEO uses Holocaust analogy to describe coffee company’s missionFormer Starbucks CEO Howard Schultz is facing backlash from employees and on social media after he drew a comparison this weekend between Holocaust prisoners and the coffee company’s mission.
Read more »
Former Starbucks CEO uses Holocaust analogy to describe coffee company’s missionFormer Starbucks CEO Howard Schultz is facing backlash from employees and on social media after he drew a comparison this weekend between Holocaust prisoners and the coffee company’s mission.
Read more »
Prince Harry says he warned Twitter CEO of U.S. Capitol riotLONDON (AP) — Britain's Prince Harry has sharply attacked the failure of social media companies to challenge hate online, revealing that he warned the chief executive of Twitter ahead of the Jan. 6 Capitol riots that the site was being used to stage political unrest. Harry made the comments Tuesday in an online panel on misinformation in California. He said he made his concerns known via email to Twitter CEO Jack Dorsey the day before the riot in Washington. “Jack and I were emailing each other
Read more »