Company: GE
Filing Date: 2025-03-13
Form Type: DEF 14A
Source: 0001308179-25-000114
Chunk: 14

Company: GENERAL ELECTRIC CO
Filing Date: 2025-03-13
Form: DEF 14A
Chunk 14
---
 design. This enhancement is the culmination of our PSU design evolution over the past several years through the company’s significant transformation. We have also worked to align incentive compensation payouts with the type of performance that will serve the company well over the long term. Notwithstanding the company’s strong financial performance (see Launching GE Aerospaceon page 2), we made a discretionary downward adjustment that reduced 2024 annual bonus payouts for named executives due to missed customer expectations for engine deliveries and services. How did the Board approach the agreement to extend your CEO Larry Culp’s leadership? Our Board views Larry as the right leader for GE Aerospace today, with the expertise and experience to build sustainable competitive advantage through FLIGHT DECK at a pivotal time for our company amidst historic industry demand. With Larry’s prior employment agreement scheduled to end in August 2024, he could have stepped down for any other opportunity of his choosing—and there was no shortage of interest from other companies. We recognized that environment, of course, as we approached our discussions with Larry and ultimately agreed on a new contract that runs through 2027. We viewed securing Larry’s continued leadership over that period as strongly in shareholders’ best interests, and we’ve heard overwhelmingly from our shareholders that they are extremely pleased with this extension. For the Board, establishing this contract also provides a planning timeframe for future leadership transition. (See Letter from the Lead Directoron page 1 for additional perspective from the Board.) There were some changes to Larry’s compensation as part of the new CEO contract, including a one- time PSU grant. Why did the Board choose to structure his compensation this way? We had significant deliberation about how best to achieve our objectives, which were twofold. We wanted a compensation package that would provide a strong incentive to deliver on the company’s long-range outlook, and we also wanted to create significant retentive value aligned with the term of the new employment contract that runs through the end of 2027. Both of those objectives are in the best interests of shareholders. After considering a range of alternatives, including increasing his standard annual compensation package, we decided maintaining Larry’s annual compensation level and providing a CEO Incentive Grant was the best approach to meet those objectives. The CEO Incentive Grant consists entirely of PSUs based on adjusted EPS growth through the end of 2027, with a target aligned to the long-term financial outlook the company presented to investors in March 2024. Those are ambitious objectives, the achievement of which will benefit all GE Aerospace shareholders. We set a