General Electric Co. (NYSE:GE) has announced the extension of Chairman and CEO H. Lawrence Culp Jr.'s employment agreement until at least December 31, 2027, with the possibility of an extension through the end of 2028. This strategic move, effective from Monday, secures Culp's leadership following his notable impact on the company since taking the helm in 2018.
The new contract includes a base salary of $2 million, a target annual bonus at 200% of the base salary, and starting in 2025, an annual equity award valued at $15.25 million. Additionally, Culp will receive a one-time performance-based stock unit award that could yield up to 310,289 shares, contingent on achieving specific earnings growth targets by the end of 2027.
Culp's previous performance share grant, dated August 18, 2020, will fully vest on August 17, 2024, as performance and service conditions have been met. His new contract also contains a clause allowing for a transition to an Executive Chairman role, subject to mutual agreement with the Board, during the last six months of his term.
In the event of termination without cause, resignation for good reason, or due to death or disability, Culp may still earn the performance award based on the greater of the target level or actual performance at the end of the performance period. If such termination occurs before December 31, 2026, the number of shares earned will be prorated.
GE's decision to extend Culp's contract reflects the company's focus on long-term value creation, aligning executive compensation with company performance. This announcement is based on a press release statement and additional details of the employment agreement and performance award are included in the exhibits filed with this SEC Form 8-K.
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