Summary
General Electric (GE) filed an 8-K on March 20, 2013, disclosing the approval of long-term performance awards for approximately 1,000 leaders, including its five named executive officers. These awards, granted under the 2007 Long-Term Incentive Plan, are tied to the company's overall performance over a three-year period from 2013 through 2015. The payout structure is performance-based, contingent on achieving specified goals across four equally weighted metrics: cumulative operating earnings per share, cumulative total cash generation, 2015 Industrial earnings as a percentage of total Company earnings, and 2015 return on total capital. The awards are payable in cash, with potential for stock payout at the discretion of the Management Development and Compensation Committee (MDCC), and are subject to forfeiture if employment terminates before the end of the performance period. The MDCC retains the ability to adjust metrics for extraordinary items and claw back awards in cases of misconduct.
Key Highlights
- 1GE approved long-term performance awards for approximately 1,000 leaders, including its five named executive officers.
- 2Awards are for the performance period of 2013 through 2015.
- 3Payout is contingent on achieving specific goals across four equally weighted performance metrics: cumulative operating EPS, cumulative total cash generation, 2015 Industrial earnings % of total, and 2015 return on total capital.
- 4Awards are payable in cash (or stock at MDCC's discretion).
- 5Payouts are prorated based on performance levels (threshold, target, maximum).
- 6Awards are subject to forfeiture if employment terminates before December 31, 2015.
- 7The MDCC has the right to adjust metrics for extraordinary items and claw back awards in cases of misconduct.