GE Chief Executive Officer Jeffery Immelt has stated a waiver in bonus and incentives amounting to $11.7 million as a measure to overcome the economic meltdown. The company has been facing credit and share crisis since the global economic slump.
Immelt's salary too has remained static since 2005. He declined to accept a three-year cash compensation award and bonus that were due to him by the company. Immelt performance during the last three years had earned him long-term performance cash award of almost $12 million. He was also entitled to an annual bonus, which was worth $5.8 million in 2007. But the CEO refused to accept the enhancements in the current economic scenario.
According to the committee, Immelt had "performed well in an extraordinarily tough business environment," though he was not able to meet the financial goals set a year ago. Immelt, who would be 53 has been holding the position since Sept. 7, 2001, and works without a contract.
However, Immelt would continue to earn performance-share units, which may be converted into GE stock in five years if the group achieves certain goals on its cash and stock return.