General Electric is facing a tussle at its annual meeting next month after two top shareholder advisory firms recommended a vote against chief executive Larry Culp’s revised pay package, which lowered the bar for him to eventually collect as much as $232 million.
Glass Lewis said it was “uncomfortable” with the plan that maintained Mr Culp’s maximum potential payout “in exchange for reduced shareholder value creation”. Its recommendation for the non-binding vote echoed the concerns of another proxy adviser, Institutional Shareholder Services, which also urged opposition to the pay plans.
“Mid-cycle adjustments to performance equity grants are generally considered to be problematic, particularly when the changes both increase the value of the award and decrease the performance level needed to earn it,” ISS said in its report.
The recommendations highlight growing unease over GE’s decision in August to essentially halve the share price targets needed for Mr Culp to qualify for an equity-based payout valued at as much as $232m by the end of his tenure. The revisions were made as part of a two-year contract extension to keep him at the helm through to 2024.
Glass Lewis and ISS also said they support a separate shareholder proposal for GE’s board of directors to be led by an independent chair, rather than the chairman-CEO arrangement in place for decades.
GE said it disagreed with those recommendations. The Boston-based maker of jet engines, power equipment and medical scanners plans to hold its annual meeting on May 4.
“We value the feedback and views of our shareholders, and we will continue to engage with many of them on a range of topics, including executive compensation,” the company said in a statement.
GE shares fell 1.2 per cent to close at $13.39 in regular New York trading on Friday.
Mr Culp’s initial compensation plan included a one-time equity award worth a maximum of $232.5m if GE shares rose above $31. Under his revised contract, Mr Culp would earn the same value if the shares reached $16.68 on average for 30 consecutive trading days during his tenure.
The change came after GE shares plunged last year amid the coronavirus pandemic to the lowest levels since 1991. The shares stormed back in the second half, posting a big-enough gain for Mr Culp to qualify for an initial payout threshold under that plan. The rally has continued this year with about a 24 per cent gain through to Friday.
The years Ramadan fell in May
Evacuations to France hit by controversy
- Over 500 Gazans have been evacuated to France since November 2023
- Evacuations were paused after a student already in France posted anti-Semitic content and was subsequently expelled to Qatar
- The Foreign Ministry launched a review to determine how authorities failed to detect the posts before her entry
- Artists and researchers fall under a programme called Pause that began in 2017
- It has benefited more than 700 people from 44 countries, including Syria, Turkey, Iran, and Sudan
- Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
- Unlike students, they are allowed to bring their families to France
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
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Killing of Qassem Suleimani
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Sustainable Development Goals
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at all ages
4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all
5. Achieve gender equality and empower all women and girls
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10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe, resilient and sustainable
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14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development
15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss
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17. Strengthen the means of implementation and revitalise the global partnership for sustainable development
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