General Electric (GE) announced a 67 percent cut in incentive grant this year to its CEO Larry Culp after shareholders last year rejected his compensation package.
General Electric, in its annual proxy statement filed on Thursday, said it will reduce Larry Culp’s equity incentive grant for 2022 to $5 million from $15 million.
The company also disclosed Larry Culp’s annual compensation last year fell 69 percent to about $22.7 million, due to a reduction in stock awards.
As part of an extension of Larry Culp’s employment contract to 2024, GE in 2020 canceled old shares he had been given and granted him new shares tied to lower financial targets. The compensation package entailed a payout through 2024 of as much as $230 million.
Some 57.7 percent of GE shareholders last year rejected the pay deal, according to preliminary results, which some proxy advisory firms argued was too generous.
GE said in the proxy statement its board had gathered feedback from shareholders on the issue and tried to address concerns related to compensation matters.
GE said its board does not intend to enter into a similar modification of the CEO’s employment agreement in the future. It also promised to use discretion sparingly in determining bonus pools.
GE’s annual shareholders meeting is scheduled in May.