Summary
General Electric Company (GE) filed an 8-K on June 21, 2005, reporting a modification to its policy regarding the personal use of corporate aircraft by executives. Effective this month, Vice Chairmen are now required to lease corporate aircraft for personal use exceeding $200,000 annually, a change from previous policy where no lease was required. This modification aims to align executive compensation and benefits with standard business practices and regulatory expectations. In conjunction with this new policy, GE entered into an aircraft time-sharing agreement with Vice Chairman Dennis D. Dammerman on June 15, 2005. Under this agreement, Mr. Dammerman will lease corporate aircraft for personal use and will be responsible for reimbursing the company for actual flight expenses, calculated in accordance with Federal Aviation Administration (FAA) rules. The agreement details the specific costs covered, such as fuel, crew travel expenses, and landing fees, with an additional charge for fuel. The company retains control over flight scheduling and cancellation for safety and maintenance reasons, and the agreement is set to terminate upon mutual consent, retirement, or death of Mr. Dammerman.
Key Highlights
- 1GE modified its policy for executive personal use of corporate aircraft.
- 2Vice Chairmen must now lease corporate aircraft for personal use exceeding $200,000 annually.
- 3This policy change was decided by the Management Development and Compensation Committee in June 2005.
- 4An aircraft time-sharing agreement was executed with Vice Chairman Dennis D. Dammerman on June 15, 2005.
- 5Mr. Dammerman will reimburse GE for actual flight expenses, capped by FAA regulations, plus an additional charge.
- 6The agreement explicitly outlines reimbursable flight expenses including fuel, crew costs, and fees.
- 7GE retains final authority on flight scheduling and cancellation for safety and operational reasons.