General Electric Co (GE) announced on Thursday that Chief Executive Officer Larry Culp’s incentive grant for 2022 would be cut by 67% following a non-binding but rare shareholder rebuke last year.
The industrial conglomerate said in its annual proxy statement that the CEO’s annual equity incentive grant would be cut to $5 million from $15 million.
The top executive’s annual compensation for 2021 stood at about $22.7 million, or a 69% decrease compared to 2020, because of reduced stock awards.
As part of an extension of CEO Culp’s employment contract to 2024, in 2020 General Electric canceled old shares he had been granted and gave him new shares related to lower financial targets.
The CEO’s total compensation package through 2024 would be $230 million.
In 2021, nearly 57.7% of General Electric’s shareholders rejected the CEO pay deal, preliminary results showed.
General Electric shares closed higher for a second consecutive trading session in New York on Thursday. The stock went up 0.88% ($0.83) to $95.53, after touching an intraday high at $95.57. The latter has been a price level not seen since March 1st ($96.06).
Shares of General Electric Company have risen 1.12% so far in 2022 compared with a 7.44% loss for the benchmark index, S&P 500 (SPX).
In 2021, General Electric’s stock went up 9.34%, thus, it underperformed the S&P 500, which registered a 26.89% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 11 out of 16 surveyed investment analysts had rated General Electric’s stock as “Buy”, while 5 – as “Hold”. The median price target on the stock stands at $112.44.