Company: GE
Filing Date: 2025-03-13
Form Type: DEF 14A
Source: 0001308179-25-000114
Chunk: 58

Company: GENERAL ELECTRIC CO
Filing Date: 2025-03-13
Form: DEF 14A
Chunk 58
---
 the financial performance results included         
 in the table reflect our financial performance prior to the spin-off of GE Vernova and do            
 not reflect the reclassification of our GE Vernova business into discontinued operations.            |
| (6) | Free                                                                                                 
 cash flow is                                                                                         
 the financial measure from the tabular list of Most Important Financial Measures below, which        
 represents the most important performance measure used to link compensation actually paid            
 to our named executives in 2024 to the company’s performance. Free cash flow is a non-GAAP           
 financial measure. For information on why the company reports free cash flow and how it is           
 calculated, refer to the Explanation of Non-GAAP Financial Measures                                  
 and Performance Metrics on page 65.                                                                  |

RELATIONSHIPS BETWEEN COMPENSATION ACTUALLY PAID AND FINANCIAL PERFORMANCE MEASURES In accordance with Item 402(v) of Regulation S-K, the company is providing the following descriptions of the relationships between information presented in the Pay versus Performance table. The calculation of compensation actually paid in each of the years shown reflects required adjustments to equity award valuations under SEC rules, which were in turn impacted by our stock price performance and cancellation of performance-based awards that did not meet their established thresholds. When the committee selected performance measures in support of the design of our 2024 executive compensation program, it focused on factors that it believes will further the company’s and business units’ goals for the year, align with GE Aerospace’s long-term strategic objectives and contribute to the creation of long-term shareholder value, including our ability to generate free cash flow, adjusted revenue growth and operating profit (as applicable), as well as our adjusted earnings per share and operational measures such as safety performance. For more information about these factors and decisions that impacted the 2024 compensation of our named executive officers, see the Compensation Discussion & Analysissection of this proxy statement. The chart below depicts compensation actually paid and the cumulative TSR of GE Aerospace and the S&P 500 Industrials Index for the five years shown. A significant portion of our executive compensation program comprises equity awards, and compensation actually paid for such years was most strongly affected by our stock price performance, as reflected in the equity award valuations required by SEC rules. For 2024, our stock price increased 69% year over year, compared to 16% for our peer group, the S&P 500 Industrials Index, resulting in our TSR increasing by more than 1.5x for 2024 and our five-year total