General Electric last year eliminated bonuses for its senior managers for initially in its 126-year history, saving millions of dollars after losing money in 2017, the industrial conglomerate said on Monday.
All although one of its top executives did not receive a bonus, the company said. The modifications led to steep declines in compensation in addition to reflected the company’s poor results in 2017, according to the company’s annual proxy.
Former CEO Jeff Immelt, who stepped down on Aug. 1, received $8.1 million in 2017, down coming from $21.3 million the year before. Compensation includes salary, bonus, stock, options in addition to some other income. GE eliminated Immelt’s 2017 target bonus of $5.4 million in addition to cut about $1 million coming from his salary.
Current Chief Executive John Flannery earned $9 million in salary in addition to some other compensation last year. The company eliminated a $3 million target bonus for him, GE said.
The company also eliminated bonuses for former Chief Financial Officer Jeff Bornstein, former Vice Chair of Business Innovations Beth Comstock in addition to John Rice, the former CEO of GE’s global growth organization. The savings on bonuses in addition to some other compensation totaled more than $10 million.
The exception was David Joyce, head of GE’s aviation business, who received about $5.2 million. While of which was down coming from $12.6 million in 2016, Joyce received a $1.4 million bonus.
“We are holding leaders accountable for performance,” GE said inside the proxy, noting operating profit fell 11 percent in addition to of which the amount in its bonus pool fell 75 percent. GE reported a net loss of 72 cents a share last year.
“Consistent with of which commitment to align pay to performance, the bonuses we paid were concentrated in Aviation in addition to Healthcare, which had outstanding years,” the company said.
GE said inside the proxy of which was not changing compensation for board members, some other than to add a $30,000 annual payment for members of the fresh finance committee.
Directors receive $275,000 a year, in addition to additional amounts depending on their committee assignments, the company said.