GE's top executives won't get bonuses after company's terrible year

General Electric axes top-executive bonuses for first time

General Electric axes top-executive bonuses for first time

Current Chief Executive John Flannery earned $9 million in salary and other compensation past year. Flannery earned USD1.6 million in salary in 2016 when he was CEO of the GE Healthcare division.

Given that GE was the worst performing stock on the Dow Jones previous year - plunging 45% and losing US$125bn from its market value - the move to slash bonus payouts is perhaps not surprising. Last year, the company reported a net loss of 0.72 United States dollars per share.

Flannery, Immelt's replacement, hasn't fared as well.

The US giant General Electric removed bonuses for its senior management for the first time in its 126-year history last year.

Immelt, who led GE for 16 years, exited with benefits and deferred shares worth about $100 million, according to data compiled by Bloomberg. The savings on bonuses and other compensation totalled more than $10 million. He was recently named chairman of Athenahealth Inc.

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In a filing late Monday, GE said Flannery's salary was set at US$2mln which, when combined with stock options, pension and deferred compensation, took his total pay package to US$9mln for the year. The disclosure is part of a broader federal rule change requiring public companies to reveal how CEO compensation stacks up against that of the company's employees.

The new CEO made changes to GE's executive-compensation programs to improve accountability and better align pay with investor priorities.

GE is also overhauling its board, shrinking to 12 directors from as many as 18, while adding several new members such as former Danaher Corp.

Immelt, who stood down from his role as chief executive in August and from the board two months later, received US$2.86mln in salary during 2017, plus nearly US$2mln in perks - mostly relocation benefits.

The company also eliminated bonuses for former Chief Financial Officer Jeff Bornstein, former Vice Chair of Business Innovations Beth Comstock and John Rice, the former CEO of GE's global growth organisation.

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