The 47 million dollar bonus (about 38 million euros), which has been at the head of the group since October 1, 2018, could reach up to 230 million dollars (about 187 million euros) if the executive director managed achieve the company’s financial objectives, according to documents sent to the United States Securities and Exchange Commission, consulted by France-Presse (AFP).
The official also received almost 25 million dollars (just over 20 million euros) in compensation, in 2019.
This year, in the midst of the aviation sector crisis due to the pandemic and which affected the group – a manufacturer for LEAP aircraft in partnership with the French group Safran -, GE changed, on August 18, the executive director’s contract, with new terms that were better than the contract signed in 2018.
The contract was extended until 2024 with an additional option of another year, and the financial resources initially established were reduced, making the task for which Larry Culp had initially been contracted less ambitious.
The $ 230 million bonus is attainable if the CEO raises $ 17 (about 13 euros) each GE share, below the $ 31 (about 25 euros) initially provided for in the contract.
With the goal set by 2025, Culp will have no difficulty in reaching this value, which could be driven by the eventual recovery of the world economy and which will also have a positive impact on GE.
However, the group – hugely affected by the pandemic, which forced airspace restrictions in several countries to curb the spread of SARS-CoV-2 – began a restructuring that had a greater impact on the thousands of employees made redundant.
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