Company: GE
Filing Date: 2025-03-13
Form Type: DEF 14A
Source: 0001308179-25-000114
Chunk: 22

Company: GENERAL ELECTRIC CO
Filing Date: 2025-03-13
Form: DEF 14A
Chunk 22
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 believes align with the company’s long-term strategic objectives and contribute to the creation of long-term shareholder value. The Compensation Committee then monitors company performance against the performance metrics during the performance period, and following the conclusion of the performance period, the Compensation Committee certifies the final levels of achievement. The certified achievement levels determine the percentage of the target number of PSUs under the award that a named executive will earn. Certification below the threshold amount for both financial metrics will result in cancellation of the PSUs. 2022 PSUs. As previously reported in the company’s 2023 proxy statement, the threshold levels of performance for the 2022 PSUs were not met, and in February 2023 the Compensation Committee cancelled the 2022 PSUs with no payout. 2023 AND 2024 PSUs. While we have adopted a new PSU design for 2025 as described below, the PSUs granted in 2023 and 2024 are based on adding together the financial results for each year of a three-year performance period. Performance is measured against the following financial metrics: adjusted earnings per share (50% weighting) and free cash flow (50% weighting); with results interpolated for performance between threshold (25%), target (100%) and maximum (175%). For the 2023 PSUs, performance against the financial metrics is measured separately for each calendar year during the three-year performance period, with each year weighted equally. Because of the significant period of transformation amidst executing two spin-offs when these PSUs were granted in 2023, the grant agreements provide for targets to be set early within each year in the three-year performance period. For the 2024 PSUs, performance against the financial metrics is measured separately for each calendar year during the three-year performance period, with each year weighted as follows: 2024 (50% weighting); 2025 (30% weighting); and 2026 (20% weighting). The targets against which the company’s performance is measured for each year were fixed at the time the grant was awarded. The PSU financial performance result is also subject to modification of +/- 20% based on three-year relative TSR versus the S&P 500 Industrials Index, but in no event will the total payout under the PSUs exceed 175% of the target amount. For the 2023 PSUs, the target, threshold and maximum levels for relative TSR are the 35th, 55th and 80th percentile performance versus the S&P 500 Industrial Index, respectively. For