Company: GE
Filing Date: 2025-03-13
Form Type: DEF 14A
Source: 0001308179-25-000114
Chunk: 23

Company: GENERAL ELECTRIC CO
Filing Date: 2025-03-13
Form: DEF 14A
Chunk 23
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 the 2024 PSUs, the threshold, target and maximum performance levels for relative TSR are the 25th, 50th and 75th percentile performance versus the S&P 500 Industrial Index, respectively. The change to the relative TSR performance levels was made in consideration of the shift that began in 2024 to the use of multiyear financial goals set at the time of PSU grant. The Compensation Committee considered the rigor of our new multi-year financial goals as well as the increased challenge of maintaining relative outperformance on a multi-year basis in determining the new TSR performance levels.

| ANNUAL                                                                                                                                 
 PROGRAM HIGHLIGHT – 2025 PSU DESIGN. For                                                                                               
 2025 we adopted a new PSU design, which measures cumulative performance over a three-year performance period (2025–2027).              
 Performance is measured against the following cumulative three-year financial metrics, which were fixed at the time the grant          
 was awarded: adjusted earnings per share (50% weighting) and free cash flow (50% weighting); the financial performance result          
 is also subject to modification of +/- 20% based on three-year relative TSR versus the S&P 500 Industrials Index. This design          
 enhancement focuses on long-range performance, and was enabled by the completion of the company’s multi-year strategic transformation. |

32 GE Aerospace 2025 Proxy Statement EVOLUTION OF PSU DESIGN THROUGH SPIN - OFFs Financial Metrics: Adjusted Earnings Per Share (50% weighting) and Free Cash Flow (50% weighting) Relative TSR (vs. S&P 500 Industrials Index): +/- 20% Modifier HOW WE SELECTED TARGETS AND METRICS FOR OUR OUTSTANDING PSUs. The Compensation Committee chose total company adjusted earnings per share and free cash flow as metrics for all years of our currently outstanding PSUs to incentivize and focus management on both profitability and cash generation, which are important financial priorities for GE Aerospace, and these are 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 (see Explanation of Non-GAAP Financial Measures and Performance Metricson page 65). These are financial metrics that help align all leaders who receive the PSUs to a uniform set of performance targets at the total company level, in contrast to the metrics used in our AEIP that include elements of business-level performance for employees aligned to individual businesses. Beginning with the new design for the 2025 PSUs, the incentive provided by these financial metrics in the PSUs is