A majority of General Electric shareholders voted Tuesday against the compensation proposals for the group's main executives, including its CEO Larry Culp, at the annual general meeting.
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Larry Culp, who took over as head of the company in 2018, pocketed a total of $ 73.2 million in 2020, mostly in the form of stock awards.
Faced with the pandemic, he gave up most of his salary and his bonus.
To encourage him to stay until at least 2024, the board of directors amended his compensation plan last summer with very favorable terms, including a package of shares and options to which he could theoretically have access to the scheme. 'resulting from its contract valued at the end of 2020 at more than $ 100 million.
"Maintain a strong team"
The shareholders' vote is not binding.
But the board of directors plans to
"collect additional comments (from shareholders) to take into account the result of the vote and assess the executive compensation program in the future
said a spokesperson.
Its members continue to believe that it is
"important to maintain a strong team to guide the transformation of the group over several years,"
added the spokesperson.
The group has in fact been engaged for several years in a slimming treatment because of its high debt and a few bad bets, increasing social plans and disposals of activities deemed non-strategic.