Under Pressure From Peltz, GE Ties Bonuses to New Targets
- Management faces 20% cut in payouts if objectives aren’t met
- ‘Very large’ investor is exerting influence, analyst says
A worker sweeps the floor near gas turbine parts at the General Electric Co. (GE) energy plant in Greenville, South Carolina, U.S., on Tuesday, Jan. 10, 2017. General Electric Co. is scheduled to release earnings figures on January 20.
General Electric Co. said it would cut management bonuses if the company fails to meet certain financial targets, as Chief Executive Officer Jeffrey Immelt vowed to cut costs after stepped-up talks with activist investor Nelson Peltz.
Executive payouts will drop 20 percent if the company doesn’t meet its target for $17.2 billion in industrial operating profit this year and falls short of a new goal of lowering “base costs” by $1 billion to $23.9 billion. GE also set a cost objective of $22.9 billion for next year.