GE's Nickel-and-Diming Included a Payroll Switch

Jeff Immelt's reign as General Electric Co.'s CEO was meant to herald an era of simplification, increased transparency and a better work environment at one of America's most iconic companies. It didn't turn out that way.

Overly optimistic profit forecasts, an SEC investigation into accounting practices and a surprise charge at GE Capital -- a unit thought to have largely been wound down -- have all taken a toll on Immelt's reputation and the company's credibility, not to mention its stock price. But Immelt exited with millions, whereas rank-and-file employees have tolerated a number of benefit reductions and policy changes that made GE's finances look better, often at their expense. And they aren't happy about it.

Among other things, employees were bothered by GE's decision about a year ago to delay pay in a way that improved the optics around cash flow. More than 70,000 U.S. salaried employees were affected. Current workers who were concerned about the maneuver contacted Bloomberg Gadfly, and Gadfly reviewed details of the previously unreported payroll shift. GE confirmed the change, but says the pay delay was part of an effort to simplify its payroll system and wasn't disclosed in regulatory filings because the dollar amounts weren't material to the company.