What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to report the entry into a material definitive agreement, specifically an aircraft time-sharing agreement between General Electric and its executive, Lloyd G. Trotter, for the personal use of corporate aircraft.

How will Mr. Trotter be charged for personal use of the aircraft?

Mr. Trotter will pay GE for the actual expenses of each specific flight for personal use. These expenses are detailed and include costs like fuel, crew travel, landing fees, and in-flight services, with an additional charge of 100% of fuel and related expenses.

Does Mr. Trotter have unlimited access to corporate aircraft?

No, the agreement states that the company and flight crew retain the authority to determine which flights may be scheduled and when a flight may be cancelled or changed for safety or maintenance reasons.

What are the potential implications for GE shareholders?

This filing indicates GE has a formal policy and agreement for executive personal use of corporate assets, ensuring reimbursement to the company and compliance with regulations. This demonstrates a governance practice regarding executive compensation and perks, aiming to align costs with actual usage and prevent undue burden on shareholders.

GE 8-K: Material Agreements

Summary

This 8-K filing from General Electric (GE) on October 16, 2006, primarily reports on a material definitive agreement. Specifically, it details an aircraft time-sharing agreement entered into between GE and its Vice Chairman and President and CEO of GE Industrial, Lloyd G. Trotter. This agreement allows Mr. Trotter to use corporate aircraft for personal use under specific conditions. For investors, the key takeaway is the establishment of a formal policy for executive personal use of corporate assets. The agreement outlines that Mr. Trotter will reimburse GE for the actual expenses of each personal flight, including direct costs and a 100% markup on fuel, oil, and similar items. This policy aims to ensure fair compensation to the company for such use and compliance with FAA regulations, reflecting a governance practice regarding executive perks.

Key Highlights

1General Electric entered into an aircraft time-sharing agreement with executive Lloyd G. Trotter.
2The agreement allows for the personal use of corporate aircraft by Mr. Trotter.
3Mr. Trotter will reimburse GE for the actual expenses of each personal flight.
4Reimbursement includes direct flight costs plus a 100% markup on fuel, oil, lubricants, and additives.
5The agreement is subject to FAA regulations regarding personal use of corporate aircraft.
6The company and flight crew retain control over flight scheduling, cancellation, and changes for safety and maintenance.
7The agreement terminates upon mutual consent, Mr. Trotter's retirement, or death.

GENERAL ELECTRIC CO 8-K Report, Material Agreement (Oct 16, 2006)

Summary

Key Highlights

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