GE's CEO could make a fortune when the company splits into 3

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Larry Culp's employment contract guarantees it.

GE plans to split the conglomerate into three companies focused on aviation, healthcare and energy. We can’t know the ultimate outcome of such a split, but there is one absolute certainty: CEO Larry Culp will have extraordinary financial gains.

Culp will be awarded between 4.6 million shares and 13.9 million shares, with vesting based on whether GE’s highest average closing price for any 30 consecutive trading days between Aug. 18, 2020 and Aug. 17, 2024 hits specific trading values, with a threshold, target and maximum payments. SOC Investment Group, which works with pension funds at four unions and was then known at CtW Group, argued in a letter ahead of the 2021 annual meeting that Culp’s award could be worth “a staggering $232.5 million at maximum. Astonishingly, the threshold performance hurdle is 12% lower than the stock price when Mr. Culp was hired” in October 2018.

Whether GE’s plans to split into three companies will be a change in control may depend in part on whether “more than 50% of the surviving entity is controlled by the shareholders immediately prior to such event, in substantially the same proportions as their ownership immediately prior to the event.”

 

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mrtgr Of course he will.

There's no greater joy than having financial freedom and a life free debts 😊, that's why I keep posting a comment about Mrs Nichelle_1111

Shocking - maybe it isn't. Of course there's an incentive for the top dude to push this.

wow

lol- Just like hpq

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