GE CEO’s Payday Sends the Wrong Message
Does Larry Culp’s base pay really need to be so generous?
The $2.5 million-a-year man.
Photographer: T. Rowe Price Group, Inc.
GE is sure rolling out the red carpet for Larry Culp.
The beleaguered industrial conglomerate disclosed some details late Thursday of its compensation agreement with Culp, the former Danaher Corp. executive who was tapped this week to replace John Flannery as GE’s CEO and chairman. The four-year accord is clearly designed to align Culp’s interests with those of shareholders: If, under his stewardship, GE’s stock rises 150 percent and keeps in that range for 30 consecutive days between now and the fall of 2022, Culp could pocket a one-time equity award valued at more than $230 million. A 50 percent share boost under the same terms would reward Culp with nearly $50 million. He gets nothing for a smaller gain.