8-KMaterial AgreementsExhibits & Filings

GENERAL ELECTRIC CO 8-K Report, Material Agreement (Jun 21, 2005)

Filed June 21, 2005For Securities:GE

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.

Frequently Asked Questions

This 8-K filing announces a change in General Electric's policy regarding the personal use of corporate aircraft by its Vice Chairmen and details a specific agreement entered into with one executive, Dennis D. Dammerman, under the new policy.

Previously, Vice Chairmen could use corporate aircraft for personal travel without a lease requirement. The new policy requires any Vice Chairman to lease the aircraft for personal use that exceeds $200,000 per year.

Dennis D. Dammerman is a Vice Chairman of the Board and Executive Officer of General Electric. He entered into an aircraft time-sharing agreement on June 15, 2005, allowing him to lease corporate aircraft for personal use and requiring him to pay for the actual expenses of each flight, calculated according to FAA rules plus an additional charge.

Mr. Dammerman will be responsible for reimbursing GE for expenses such as fuel, oil, crew travel expenses (food, lodging), hangar and tie-down costs away from base, insurance for the flight, landing fees, customs fees, in-flight food and beverages, passenger ground transportation, flight planning services, and an additional charge equal to 100% of the fuel costs.