General Electric Co (NYSE: GE) said on Thursday CEO Larry Culp has agreed to lower his annual compensation by $10 million and retained his contract until 2024 in response to shareholder concerns last year.
What Happened: The industrial conglomerate’s board in August 2020 had extended Culp’s contract to at least Aug. 2024 and awarded him a special stock grant.
“There was shareholder concern around the timing, size and structure of the 2020 retention grant made as part of the extension,” GE said in a filing.
As per the revised contract, Culp, 58, will now receive a $5 million equity award instead of the $15 million. The compensation is linked to performance targets and could fall short or exceed the plan.
“We believe all shareholders are pleased that he has been retained and committed to remaining in place until 2024 at a minimum as we execute our previously announced spins and renewal of our businesses," the company said.
See Also: 5 Bizarre Things You May Not Know About General Electric
GE in November had announced plans to split into three separate publicly traded companies, with hopes to spin off its healthcare business to shareholders in early 2023 and then separate the renewable energy and power units in early 2024.
Culp’s Pay Over The Years: Culp drew a $22.66 million compensation in 2021, the company said. That includes a $2.6 million base salary, a $4.2 million bonus, and stock awards.
In 2020, when Culp was serving his second year at the industrial conglomerate as CEO, he drew a compensation of $73.19 million.
Culp, who has been instrumental in lowering GE’s massive debt, drew a compensation of $24.6 million in 2019 when he first took the reins.
Price Action: GE stock closed 0.88% higher at $95.5 a share on Thursday.
