General Electric is in dire need of a turnaround and will pay its new CEO handsomely if he can boost GE shares.
Larry Culp, named GE chairman and CEO on Monday, will receive a compensation package of $21 million a year for the next four years, CNBC's David Faber reported Friday, citing people familiar with the deal. But that's not the best part for Culp: Boost the stock by more than 50 percent and he gets a payday to the tune of hundreds of millions.
"If we get up 150 percent, we're talking $300 million," Faber said.
The one-time pay out is based on performance metrics for Culp, marked by rises in GE stock. The Wall Street Journal first reported the compensation package.
"Larry is a proven executive with a long track record of superior execution, and the Board's package to attract Larry is overwhelmingly tied to performance," GE said in a statement. "Nearly 90% of his annual pay will be at risk and his one-time grant will only pay out if there is a 50-150% increase in GE's stock price."
"That is a contract that, if you're performance oriented, it's the best performance oriented contract I've ever seen," CNBC's Jim Cramer added. "And I don't think anyone's seen a better one."
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