We strive to pay fair and competitive wages to all of our employees, considering the specific job markets and peer compensation.
Immelt’s alignment with shareowners, he has purchased approximately 1.2 million shares in the open market since he became CEO in 2001.
Also, since he became CEO, he has not sold any of the shares he has acquired through exercising stock options or the vesting of RSUs or PSUs (except those withheld to pay option exercise prices and taxes on such awards).
With limited exceptions, the committee retains discretion to adjust compensation pursuant to our clawback policy as well as for quality of performance and adherence to company values.
See “How We Oversee & Manage Enterprise Risk” on Governance.
Why the Board recommends holding future say-on-pay votes EVERY YEAR.
We have engaged shareowners on this issue and, based on their feedback, we believe that a significant portion of our investors would prefer an annual say-on-pay vote.The Compensation Committee assessed GE’s performance on its strategic goals at 95% instead of 100% because, although the company overall had a good year, GE missed some of its key investor goals (organic revenue growth and margin expansion) and some key businesses, including Power, Oil & Gas and Energy Connections, experienced challenging business environments. We pay cash bonuses to our named executives each February or March for the prior year under a program designed to closely align incentive compensation and annual company results.Here’s how the plan works: 2013 PSUs PAY OUT AT 100% AND 2014 PSUs PAY OUT AT 83%. Immelt earned 100% of the PSUs granted to him in 2013 and 83% of the PSUs granted to him in 2014.Although the executive compensation discussion in this proxy statement focuses on the compensation decisions for our named executives — Jeff Immelt (Chair & CEO), Jeff Bornstein (SVP & CFO), Beth Comstock (Vice Chair & CEO of Business Innovations), David Joyce (Vice Chair & CEO of Aviation), John Rice (Vice Chair & CEO of our Global Growth Organization) and Keith Sherin (Former Vice Chair & CEO of GE Capital) — our executive compensation programs apply broadly across GE’s employee ranks.For example, approximately 120,000 employees participate in an annual bonus program, more than 5,000 executives receive equity incentives, and approximately 1,000 senior executives participate in our long-term performance award (LTPA) program.See “Long-Term Performance Awards (LTPAs)” below for information on our 2016–2018 LTPAs. We granted bonuses to our named executives under a recently redesigned, more formulaic bonus program.