General Electric CEO Immelt Says No to Bonus, Again
March 7, 2010
(ChattahBox)—The chairman and chief executive of General Electric, Jeff Immelt, who has railed against the “meanness and greed” of Wall Street, has refused to accept a bonus for the second year in a row. Immelt, who has reigned as head of the world’s largest company for a decade, declined to take a bonus to set an example, as GE begins to recover from the recession. But don’t feel too bad for Immelt, his total compensation package for 2009 exceeded $9 million.
According to GE’s proxy statement, Immelt did not accept an end of the year bonus, despite “delivering a strong financial performance” during a severe recession.
Other top executives did not follow Immelt’s example. Michael Neal, head of GE’s Capital Finance business was awarded a $2.9 million cash bonus, for “keeping GE Capital safe and secure and positioning it for future growth.” The total cash bonuses handed out for 2009 reached nearly $11 million.
With growing risks in the market and a decline in the financial services unit, which has been the profit maker for GE in years past, Immelt told shareholders that the company needs to return to its industrial roots. “GE must be an industrial company first,” Mr Immelt said.
Source: Financial Times.