GE Didn't Pay Cash Bonuses to CEO, Top Executives in 2017
The Wall Street Journal (March 12, Gryta, Francis) has learned that, for the first time in its 125-year history, General Electric Co. did not pay a cash bonus in 2017 to its top executives at corporate headquarters. In a regulatory filing, the Boston-based company's board of directors withheld the bonuses and canceled some 2015 equity awards that executives would have partly received. "It cited the conglomerate's struggles last year, which forced GE to slash its dividend, cut thousands of jobs and overhaul its leadership," reports the Journal. Moving forward, GE said it was changing its executive compensation program for this year, eliminating a long-term cash incentive program and reducing the amount of cash salary paid to its CEO. In addition, the company is tying equity awards to total shareholder return. Finally, bonuses for employees of each operating business will be funded based on segment performance and not overall company performance.
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