Company: GE
Filing Date: 2025-03-13
Form Type: DEF 14A
Source: 0001308179-25-000114
Chunk: 19

Company: GENERAL ELECTRIC CO
Filing Date: 2025-03-13
Form: DEF 14A
Chunk 19
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 total company and the businesses during the first quarter of the performance year. Following the conclusion of the performance year, the Compensation Committee assesses total company and business performance against applicable performance metrics to determine the AEIP bonus payouts. The CEO may also provide perspective to the Compensation Committee about business or individual performance for the year, although the CEO has no role in the Compensation Committee’s determination of his own compensation. For 2024, bonuses paid to our named executives under the AEIP were determined quantitively based on the named executive’s base salary, target award percentage, achievement of applicable total company or business financial performance targets and a safety modifier. The Compensation Committee has the ability under the AEIP to apply discretion at the business or individual levels when appropriate, and for 2024, the Committee applied negative discretion to adjust total company and Commercial Engines & Services performance downward as described on page 31. How We Selected Metrics for the 2024 AEIP The Compensation Committee selects performance metrics for the AEIP that are aligned with furthering total company and business goals for the year. For the 2024 AEIP, the Compensation Committee selected the following financial performance metrics: revenue or adjusted revenue growth, as applicable (20% weighting), operating profit (40% weighting), and free cash flow (40% weighting) for total company and each of the businesses. In order to drive GE Aerospace’s overall business objectives, executives with total company responsibility had their bonuses based 100% on total company performance, and executives who led a GE Aerospace business had their bonuses based on a combination of total company financial performance (30%) and business financial performance (70%). The Compensation Committee believes this set of financial metrics focuses management on driving performance aligned with shareholders’ interests and is aligned with peer practice. The Compensation Committee selected these metrics to incentivize performance in a manner consistent with how management measures and reports the company’s operating results. Accordingly, the AEIP uses the same financial measures that management uses to report the company’s financial results each quarter and when providing an annual financial outlook for the year. The Compensation Committee believes the use of these measures in the compensation program design is appropriate and promotes consistency with metrics that many investors use to evaluate the company’s financial performance. See Explanation of Non -GAAP Financial Measures and Performance Metricson page 65 for additional discussion on the reasons we use non-GAAP financial measures and how these measures are calculated. In addition, to further align the AEIP with GE Aerospace’s overarching operational priority of safety, the Compensation Committee selected a performance modifier that can increase