This undated photo was provided by T.. Rowe Price shows H. . Lawrence Culp Jr. . who was named Chairman and CEO of General Electric on Monday, October. 1, 2018. Culp, 55, was the CEO and President of Danaher Corp.. . from 2000 to 2014. During that time, Danaher’s market capitalization and revenue has increased fivefold. He is already a member of GE’s board of directors. (T. . Rowe Price via AP)
SCHENECTADY – General Electric Co. . The main union is furious with Larry Culp Jr. , CEO of GE. Earn $ 46. 5 million bonus while Culp cuts company jobs amid coronavirus pandemic, according to the Financial Times.
Back in August, Culp’s bonus plan, which is tied to the company’s share price, was changed by GE’s board of directors in light of the pandemic and awarded when GE’s share price hit $ 10 instead of the required target of $ 19 in his original bonus agreement for 2018.
« The new plan also preserves Lord. Culp’s chances of scooping a $ 230 million maximum bonus, « wrote the Financial Times. « But now all he has to do is drive GE’s stock above $ 16. 68 to reap the full amount instead of $ 31 as his plan was for 2018. «
The newspaper noted that the stroke of luck for Culp, who turned GE very well in general, came from the fact that « GE’s aerospace division cut 20 percent of its workforce this year to improve margins. « . «
GE’s largest union, the IUE-CWA, was furious about Culp’s massive bonus, which will skyrocket should GE stock move towards $ 17. GE employs around 4 people in the capital region. 500 employees, and the IUE-CWA represents hundreds of employees in the company’s steam turbine and generator plant.
Carl Kennebrew, president of IUE-CWA, GE’s largest union, told the Financial Times that it was « absolutely outrageous » that Culp would receive nearly $ 47 million while other GE employees would lose their jobs.
« How can GE justify this type of huge bonus for its CEO while workers, their families and communities suffer? » Kennebrew told the Financial Times.
« Under Larry’s leadership, GE has made significant strides on the goals it set itself on day one as CEO: improving the company’s financial condition and strengthening its businesses, » the GE board of directors said in a statement that published by a GE spokesperson. « In light of this progress, in a significantly worse operating environment in 2020, the board extended Larry’s contract and replaced his incentive. «
The company’s shares (NYSE: GE) gained 15 cents to trade at $ 10. 71 Wednesday. They remained unchanged in early trading after close of business.
Larry Rulison has been a reporter for the Albany Times Union since 2005. Larry’s coverage for the Times Union has received multiple awards for business and investigative journalism from the New York State Associated Press Association and the New York News Publishers Association. Contact him at (518) 454-5504 or lrulison @ timesunion. com.
General Electric, H. . Lawrence Culp Jr. . , Finance, NYSE: GE
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