Company: GE
Filing Date: 2025-03-13
Form Type: DEF 14A
Source: 0001308179-25-000114
Chunk: 24

Company: GENERAL ELECTRIC CO
Filing Date: 2025-03-13
Form: DEF 14A
Chunk 24
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 differentiated further from the AEIP because the PSUs measure performance on a cumulative basis over a three-year period. The three-year TSR modifier also measures relative performance over a multiyear period using a metric that is important to investors. The Compensation Committee establishes targets and performance levels that are designed to be rigorous but realistic and informed by our internal financial performance goals and external guidance. The target, threshold and maximum performance levels for each financial performance measure are set with reference to total company performance goals that our CEO and CFO establish. While the company does not publicly disclose the specific adjusted EPS and free cash flow targets due to the proprietary nature and competitive sensitivity of that information, we account for changes to our financial goals based on performance over time. For example, the 2025 PSU targets established early this year reflect higher performance levels than the PSU targets set in early 2024, reflecting the company’s strong financial performance in 2024 and informed by our most recent internal financial performance goals and external guidance for 2025. Stock Options and Restricted Stock Units WE USE STOCK OPTIONS AND RSUs TO FOCUS ON LONG- TERM VALUE CREATION. We believe that awards of stock options and RSUs effectively focus our named executives on delivering long-term value to our shareholders. We consider stock options to be performance-based because the stock options have value only to the extent that the price of GE Aerospace stock appreciates after the award has been granted. This directly aligns payout with outcomes for our shareholders. Additionally, stock options vest over a multi-year period, and the executives must remain employed by the company on the date of the award’s restriction lapse. This helps reinforce the long-term retention of our executives and incentivizes executives to pursue growth that would result in stock price appreciation over the long-term. RSU awards reward and retain the named executives by offering them the opportunity to receive GE Aerospace stock if they remain employed by the company on the date that an award’s restrictions lapse, and provide additional alignment with shareholders. 2024 STOCK OPTIONS AND RSUs. The annual awards of stock options and RSUs granted in 2024 will vest in two equal installments on the second and third anniversary of the grant date. Our Policy on Dividend Equivalents Our awards of PSUs and RSUs are entitled to receive dividend equivalents or dividends, as applicable, and these are only paid out on the shares actually received under the terms of such awards. Stock options are not entitled to receive any dividend equivalents or dividends. GE Aerospace 2025 Proxy Statement 33 Annual Program Compensation for 2024