Company: GE
Filing Date: 2025-04-22
Form Type: DEFA14A
Source: 0000040545-25-000064
Chunk: 1

Company: GENERAL ELECTRIC CO
Filing Date: 2025-04-22
Form: DEFA14A
Chunk 1
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2024, compared to ~16% for the S&P 500 Industrials Stock Index. More broadly, GE’s historic transformation has generated enormous value for shareholders over the past several years, growing the combined market capitalization of GE Aerospace, GE Vernova and GE HealthCare by over $230 billion—more than triple—compared to the value of GE in November 2021 before the spin-offs were announced.

These achievements are in no small part thanks to the leadership of our CEO, Larry Culp. The Board strongly believes that he is the best leader for GE Aerospace today as we continue to grow our services and new engine deliveries to meet tremendous customer demand, and we were extremely pleased to announce an agreement with Larry last June to continue his leadership through 2027.

The selection of the company’s CEO is among the most important tasks we perform as a Board, and we have had extensive dialogue with institutional shareholders on this topic. There has been overwhelmingly positive support for taking action to secure Larry. Before the new contract, shareholders were keenly interested to understand the timeline for his leadership. Since announcing the new contract, the company’s strong performance has continued and shareholders have told us how much they appreciate the certainty that comes from having an agreement for Larry to continue serving through 2027. The compensation terms are an integral part of the agreement to secure Larry’s continued leadership, and we ask shareholders who support the company and this decision to support our say-on-pay vote this year.

#### Securing our CEO’s continued leadership.
The Board carefully considered how best to incentivize and retain Larry beyond the term of his prior contract, and these deliberations are discussed in additional detail in the Q&A with Management Development & Compensation Committee Chairman Stephen Angel on page 27 of the proxy statement. This was not an ordinary course retention scenario: we had recently launched as a standalone company in April 2024, and we had an exceptional CEO with a track record of tremendous value creation whose prior employment contract was coming to an end. The Board considered a range of options, and we determined that a one-time grant of performance stock units (the CEO Incentive Grant) aligned with the term of the new employment contract through 2027 would be the most effective way to secure Larry’s leadership through this critical period for GE Aerospace and the industry. The CEO Incentive Grant is entirely performance-based, and well aligned with shareholders because it is contingent upon achieving performance targets levels based on the long-term operating profit outlook of approximately $10 billion that the company provided for