Summary
This amended 8-K filing provides details on the separation agreement between General Electric (GE) and its former CEO, John L. Flannery, who was replaced and resigned from the board effective September 30, 2018. The agreement outlines specific compensation and benefits Mr. Flannery will receive, including a 12-month non-compete clause. Investors should note the financial implications of these separation terms on the company's expenses.
Key Highlights
- 1John L. Flannery's separation as CEO and board member is finalized as of September 30, 2018.
- 2GE and Mr. Flannery entered into a Separation Agreement & Release on October 29, 2018.
- 3Mr. Flannery will receive $4,250,000 in severance pay over 12 months.
- 4Eligibility for a prorated 2016-2018 long-term performance award based on company performance.
- 5Accelerated vesting for certain stock options and RSUs granted before September 30, 2017, with an exercise period until December 31, 2020.
- 6Cancellation of stock options and RSUs granted before September 30, 2017, that would vest after December 31, 2020.
- 7Continuation of eligibility for certain Performance Share Units (PSUs) to vest based on company performance.
Frequently Asked Questions
Mr. Flannery will receive $4,250,000 in severance pay over 12 months. He is also eligible for a prorated long-term performance award based on actual company performance and accelerated vesting of certain stock options and RSUs granted before September 30, 2017. His pension benefits will vest at age 60.
Stock options and RSUs granted before September 30, 2017, that would have vested by December 31, 2020, will vest sooner. However, those that would have vested after December 31, 2020, will be cancelled. Certain performance share units (PSUs) remain eligible to vest based on company performance.
Yes, the agreement includes a 12-month non-compete clause for Mr. Flannery.
Mr. Flannery's replacement as CEO and resignation from the board were effective as of September 30, 2018.