Jeff Immelt on 2008 compensation
In a tough environment in 2008, we set a record for revenue and had our third-highest earnings year ever. Our earnings declined 19% versus a decline in S&P 500 earnings of 30%. That’s not the kind of outperformance we like, but it was still better than the broader market. During the year, we continued to execute in areas that give GE solid competitive advantage over the long-term: generating strong cash flow, leading in environmentally sound products and services, expanding in global markets, and investing in innovation, technology and leaders even in tough times.
However, earnings came in below where we expected. The broad equity markets, and GE’s stock price, declined significantly in 2008.
In these circumstances, I recommended to GE’s Board of Directors that I would not receive a bonus for 2008. In addition, I participated in a 2006-08 Long-Term Incentive Plan, along with 500 other GE executives. This results in a payout every three years based on the company’s performance against specific targets in earnings, growth, cash flow, and returns. GE met or exceeded three of the four operating goals set by the Board for this three-year period. But given the circumstances, I recommended to the Board that I not receive this payout. The Board agreed with my recommendations.
At the same time, it is important that the Board and I have the freedom to compensate our senior executives in a fair and reasonable way, consistent with performance against specific goals in 2008 and over the last three years. We believe that our senior executives’ compensation in 2008 reflects their contribution to GE.
These compensation decisions, which are addressed in our 2009 proxy statement, are consistent with GE’s performance culture as well as our commitment to developing strong global business leaders.
Hello Sir – It indeed a pleasuse to send you this email. You are one of the great CEO that can be found in this world,who think about development all levels in this world. The decision what you make would have been hard however I am sure your hard work in leadership will be shinning in the forth coming year. God bless you and be with you allways.
Thank You,
Immanuel Paul,
This action proves what a great leader Jeff is.
The top 7 GE executive in total conpensation made ~ $112 million. A well paid engineering employee makes ~ $150,000/yr. So in total 7 top GE executives could save ~ 745 engineering jobs is they would forego their pay for 2008! There is plenty of engineering work just no funding so jobs are cut.
leading by example. Good initiative from jeff Immelt to show to everyone that even leading a profitable company, everybody needs to do effort especially top management. reading the proxy I am nevertheless surprised that he is the only one to refuse the bonus & that some of his staff will earn more than him in 2008 (J. Rice), WHY? he should still be the one earning the most.
Time and again you have epitomised the saying"with great power come great responsibilities". You are indeed a true leader in all sense!We are further inspired to give in whatever it takes to make it work in this environment.Thanks for teh navigation as always….
Jeff
Your decision to for go your bonus shows what a great leader you are , it also makes me proud to work for a company like GE. Keep up the good work " amd get that stock up" Thanks
Darrell Friend
Chairman L.L.912 Evendale
What a difference compared to wallstreet where you get 100million bonuses even if you lose money.
As an employee and stockholder, I greatly appreciate Jeff’s gesture. Despite common opinion to the contrary, I find him to be a great leader and am confident he’ll take us out of this.
The one issue I do have, however, is Mr. Mike Neal’s decision to accept his (appropriately reduced) bonus. GE Capital is a big reason we are where we are as a company. If Mr. Neal wants to instill confidence in those under him, he would do right to refuse any bonuses until he fixes GE Capital to compete long-term.
Dear Mr. Immelt,
It is refreshing to see good leadership. You could have accepted this bonus. This is good for the company and the morale of your employees. Thank you!
Inspirational and refreshing in today’s environment of CEO’s lobbying for excessive compensation while everyone else if hurting. Jeff’s the true leader!
I have been with GE only a few months, and have been impressed with the company. This is just another example of why Jeff Immelt is such a great leader. It’s a shame that the other leaders did not follow suit by at least reducing their compensation.
I have shown my respect for Mr. Immelt and other members of management in a couple of other forums (with numbers to back up my stance). I commend Mr. Immelt for taking this action as well as his willingness to buy company stock late in 2008. Mr. Immelt has also been "out front" throughout this period telling people what is going on, what he sees in the market, and where he thinks the company is headed (however difficult the news has been).
These actions, whether the naysayers want to admit it or not, demonstrate real leadership. When you look around and you see executive after executive in other firms (i.e. Madoff and the like) getting exposed, it’s those like Mr. Immelt that are proving they have what it takes to lead in good times and, more importantly, in bad times.
With leadership like this, I believe GE will see many more years of prosperity.
Jeff,
This is something I feel every leader should have and show. A true leader should always prove to be a role model for others. And you have done it extremely well. Decision like this could save hundreds of jobs in these tough times.
I applaud Jeff’s decision but it should have been applied to all the executives. I have a stock bonus that I have been sitting on for years that remains worthless with the current stock price.
Hi Bryon,
I’m a strong GE supporter; but, I believe you are on to something with your assessment of Mr. Neal (if in fact he did receive a bonus for his work this year). You can’t overlook the fact that GE Capital (right or wrong) is the big question mark in the market and it is the division that seems to have destroyed the equity the most this year.
However, GE Capital did make money and did far better than other financial entities. Plus, GE Capital did a lot to help the company achieve its financial objectives over the last few years.
Hard decision to expect Mr. Neal to bypass his compensation. However, I think you are right in terms of perception and the signal it would send if Mr. Neal backed away from his bonus(es) as well (if in fact he received one).
Hello Sir – I was reminded of something I had read sometime back "a good leader is one who gives credit to his subordinates for the good work done and takes the ownership of any failure in the process of achieveing a goal". Even though we didnt fail, you stand here taking ownership of what the environment has to offer. I recently joined GE Money and its an honour to be working in a company which has such a great leadership. Thanks for having me here Sir !
Good Morning Mr. Immelt,
Thank you Sir, for being a Great Leader! You put the "strength" back into being a GE Company man. I am proud to be at GEHC! Thank you Kindly!
My deepest respect to Mr. Immelt for his decision. That’s what differ between good and great leaders!
I am now even more committed to contribute to GE’s long term success.
Well done, what an example for other leaders.
I applaud Mr. Immelt’s decision to forgo his bonus. Hope his lead will serve as an example to those Wall street executives and bankers to wake up to the reality.
Refreshing to see a CEO demonstrate the moral integrity and common sense that is demanded from everyone else at our company. Way to go for leading by example.
Mr. Immelt… Your actions continue to make me even more proud to be a GE employee.
I am proud to be a member of the GE family. In the past 9+ years with GE I have learnt a couple of big things – Change Management, Innovation and more importantly Leadership which is the very essence of GE (People, Product and Process leadership).
Mr. Immelt is someone who I personally and humbly hold in the highest of regard, for leading us and GE thru some very tough times since 2001.
Sir – Thank you for your Leadership and for showing us the way…once again proud to be a member of your Team -I affirm my committment to execute in the best interests of the Company, per your directions.
Thank you,
Rajat
In my mind, I link Jeff’s decision to what he has told us in previous messages, about his father working for the company, about continuity and about him loving GE so much. This really shows he puts his wallet where his mouth is! Also, this contrasts a lot with the news I read just today about my customer’s CEO (big Utility in Spain) cashing in a 10.2M Euros bonus for 2008.
Jeff Immelts leadership is the examlpe needed in these hard times. It is also the fabrick that will stand the test of time and act as a guideing example for all American buisness leadership to strive to follow. We as Americans are in this together and Professional Management and Leadership shown by Jeff is what will get us out of it in the shortest possible time. Thanks Jeff, you make me proud to be part of the Greatest team available, General Electric.
It’s refreshing to see that employees can freely comment on Jeff Immelt’s decision and have their views aired on a GE website. I applaud GE for this openness.
Finally a CEO who "GETS IT". He is leading by example. Now let’s see if others will follow suit.
Jeff Immelt is the only Executive identified on page 23 of the proxy statement who’s total 2008 compensation was negatively affected by the 2008 performance of the GE stock. Total 2008 compensation increased for five of the other six Executives, one as high as 22%. The Board needs to reconsider whether it’s functioning as a team during good times and bad.
Jeff –
Your generous gesture is merely one example of why GE will be in great shape once the economy recovers. Thank you for your leadership and integrity. I’m proud to be an 18 year GE employee.
Mr. Immelt,
You make me proud to be an employee for this company.
It’s refreshing to see this display of faith in our leadership. Seems to me that I have been reading nothing but negative comments about GE from different investment newsletter bloggers. It is always convenient to point fingers when times are bad and blame executive management. And, yes, while they share in the problem, there are a few that dig in and become part of the solution. I think that Jeff Immelt’s decision to forego his 2008 bonus is commendable as an example of his commitment to turn around GE in these hard economic times. But this is nothing new about the man who has demonstrated only integrity and professionalism since the day he became CEO. If you look back to the flack that Mr. Immelt received from Jack Welch and whiny stockholders in early 2008, Jeff has been nothing less than stalwart in his promise to stay with his long-term strategies, albeit, tweak it a lit bit here and there, to continue to grow the company when everyone else panicked and held their hands out for federal funding. GE did not get to where it is today looking for handouts and they are certainly not sitting around waiting it out for better times. Mr. Immelt and his team have been making the tough decisions and will continue to do so to meet GE’s commitments for the future. I am confident, not only as an employee, but as a stockholder, that we shall emerge from adversity, perceived or otherwise. Just give it some time for his strategies to take shape and start turning the company back into the industry leader it always has been.
I think it would be a great boost to our company if ALL of the executives would forego their bonuses this year.
Many thanks to Jeff, but it’s unacceptable for the others to keep their bonuses. Especially when we have Embedded Systems sites shutting down and even the people at the very productive (and profitable) UK sites getting no pay rises this year.
I’ve perused the GE proxy statement. Impressive figures. A true and sincere leadership act by Jeff. I believe that we must appreciate what GE earned for its shareowners. No doubt, there was a much significant impact of current financial crisis on overall business. Earning 18.1 Billion dollars as net profit is really an impressive achievement. I believe, many of us (being individuals or as companies) are bearing the brunt of misdeeds and mismanagement of other financial groups. On one side, the big financial services powerhouses are on brink of being extinct, GE stands tall among its competitors and peers. Jeff made a generous decision to waive off his bonus and rewards. Much commendable!!
Mr. Immelt.. Thankyou and May God Bless You for your confidence and faith in the rest of us.
Jeff Immelt and Integrity. Synonymous.
Frankly, it’s tough times. I wouldn’t want to be the one trying to keep this ship afloat through this storm and though it has been frustrating to be in the hull shoveling in the coal, I am grateful for what Mr. Immelt has done to keep the company in a seemingly positive direction
. I am blessed to be employed by this company. Thank u and good JOB Mr. Immelt.
As a GE employee, I believe that Jeff’s decision to forgo his bonus of about $12 Million this year sets an excellent example for all of us to exert all out efforts to reduce our operating costs and increase productivity in 2009 and beyond. However, as a GE shareholder who believed in the Company and invested a significant portion of my 401K in GE shares over the years, I am somewhat disappointed that “Shareholder Value” is not a specific performance goal among the goals that the MDCC has established in February 2006. If the “Average earnings per share growth rate” is considered a Proxy for “Shareholder Value”, then the Company’s 4.5% average earnings per share growth rate over the past 3 years compared to the 10% threshold established by the MDCC could explain the reason why the GE share lost 75% of its value since its peak in October 2007. May be Mr. Sherin can explain the reason(s) why the average earnings per share growth rate over the past 3 years was 4.5% while the Company exceeded the 10% maximum average revenue growth rate goal during that period – see page 18 of the 2009 Proxy Statement. Does this mean that the Company is not growing profitably?
Dear Jeff, this once more shows your great leadership. Best regards, Bart Otten
I don’t care what Bill O’reilly says about you Jeff. Jeff, you are alright!
Great news, Jeff! As one of the most admired company´s leader, you have a big responsibility to show the world how to do business a how to create a perfect environment to save money. At all times we need to learn how to do more with less. When we reach this, the benefits are amazing.
Your actions demonstrate character, your willingness to teach by example. Back in the long gone days of highschool I learned that words can make you think but actions are far more convincing. In spanish it would go like this; "las palabras convencen pero los ejemplos arrastran".
A noble gesture on Mr. Immelts part, it would be refreshing to see other high-level execs within the organization following his example, however unlikely.
Jeff,
It’s admirable that you’re foregoing a 12 million dollar bonus. This and the 60% decline in our stock price has to be a little painful. I share your pain! Not being a wise investor but rather putting all my faith in GE, my 401k portfolio consists only of 13,708 shares of GE stock. Hummm,,, It ain’t lookin’ like it used to. I’ll be celebrating my 56th birthday tomorrow. For me this means only 1,471 days before I can realize my lifelong dream of collecting roughly 2,300.00 per month for the rest of my life. At that point I’ll only have 24 years remaining on a 2,000.00 per month mortgage. Being a member of the C&I team you can imagine how the potential of losing approximately 775.00 per month in pension benefits was going to impact my retirement had the sale/spin been successful. I have 2 hopes right now, 1) that you don’t try for a 2nd time to get rid of C&I before 1,471 days have passed and 2) if you are going to try to get rid of us again before I reach my 60th birthday that this economy gets so bad that perhaps SERO would be offered which perhaps would allow me to experience a poverty lifestyle a lot earlier. As crazy as that might sound, I welcome it!
I have always been proud of our CEO, Mr. Immelt. I am proud of you more now, to an extent I can not describe using any words. You not only are the best CEO we have, you also demonstrated the value that is diminishing in our society. You have set an exceptional example in this greedy world and hope that our leaders will follow your foot steps, not only in our own company, but also outside GE. You have shown the world that an extraordinary leader like you does exist. I have no doubt that GE will stay strong under your leadship and I am proud of being part of it.
This just goes to show how good of a leader Mr. Immelt is. I am proud to work for a company such as GE because of the way they treat their employees, customers, and shareholders. Mr. Immelt is a shining example to other CEO’s as to how a CEO should be especially in this day and time. Leading by showing great character and responsibility are always welcome traits in a leader.
Mr. Immelt, I couldn’t be more impressed with your decision to forgo your usual bonus. In these VERY tough economic times we’re all facing, we all need to pitch in to help each other. The CEO of a large, global company eliminating his or her own bonus is about as rare as an honest politician (and just as refreshing). Keep up the great work, and I’m confident we’ll all make it through these tough times together.
….and we’re still waiting on that "honest politician" to be honest with you:)
This is in response to Domingo Barrera comments. I don’t understand how a company set/calculate the bonus/compensation for their “executives” and I probably never will. But with those 112 million dollars, GE could save about 2000 “not so well paid engineering jobs” in southern California where I work.
Statesmanship and leadership are not the same; you need both to succeed, especially in these uncertain times…. Mr. Immelt, you have both and have it all…. I’ve always had confidence in the responsiveness of this company and this is another re-assuring gesture of value. Keep the meatball in the air Jeff!!!
This must be trumpeted; the media has a way of stifling good news, it will not be sung, as it’s deserved by the media, because only bad news sells. Let’s all continue to tell our story as nobody tells it better.
Mr. Immelt,
This certainly goes a long way toward restoring my faith in GE’s leadership. I hope your example helps stir others to recognize that now more than ever we need to be a team. As the economy gets worse, I hope GE can lead with new approaches (other then layoffs)to solving its money problems. For example, why not an across the board salary cut (i.e.10%). It seems to me this might help cut expenses significantly, keep vital resources in place and thereby help to stimulate morale and teamwork across a larger population.
Mr. Immelt tells the world what’s the leadership at GE stands for? …It’s an action not only a reaction.
Thank you.
Nice jesture, but you and the exec staff have made more money than anyone can spend in 1000 lifetimes. Take the money, then buy my GE shares at $50 each, like I paid for them.
While it’s a great jester that Mr. Immett is willing to forgo his bonus I wonder what will happen to that money? I’m also concerned about all of the other bonuses. I can understand paying for good leadership but if you underpay the employees who make the product that generates the money that provides the bonuses there would not be any money. We have seen most management personnel receive income increases of 10+% while the production personnel are lucky to receive 3% or less. The company will also use the economy and it’s down turn this year in any contract negations between the company and its unions. I would like to see the money filter down to the production workforce so that in this economy they would be able to survive on a living wage.
It is awesome to see so much positive reaction to Jeff’s decision. I am hopeful that other executives will follow his leadership example. While I realize that the GE leadership has done a great job maintaining company stability during difficult times, there is more to come. We are already in a cost-cutting mode in February, which is much earlier than prior tight years. I am sure that executives foregoing a bonus will be much less painful for them and the company than people losing jobs. Please step up to the bar and continue to show the country (and world) what a great company GE is.
Jeff…salute to you, althought it is a samll loss of your fortune…but, this a defining moment of a new chapter that differentiate a global corp with a credential CEO’s that take social responsibility and stability into his heart…
A rare gesture…… which is what GE is all about. This proves that the leadership selection process in GE is a sound one. And to all, this is very encouraging.Mr Immelt,more grease to your elbows, the world is watching.
I’m not sure why there is so much positive reaction to this since the total compensation for Mr. Immelt was still $14M. That seems a bit high to me given the corporate-side cutbacks that are going on.
Frankly, I expect nothing less of the Jeff and the leadership group. Why should they receive bonuses that equate to several ‘average joe’ salaries each in an environment where the company is showing negative growth? It would be refreshing to see his directs and the leader directly beneath them to also pass on the bonus this year. I doubt they will though.
I appreciate the action Jeff is taking at this time, however, Mr. Barrera makes a good point and seeing the poor performance of GE stock, I think if the 500 top GE executives took a percentage cut in their bonuses equal to the percentage dropped by GE stock last year, they would still be generously rewarded. It’s a bonus, not a cut in salary.
Mr Immelt – I commend you for stepping up and not taking your bonus. In this time of "greed" that is a wonderful gesture. I only wish that the other execs would follow your lead and do the samething. I work at a unit that is down to almost 20% of the staff that we use to have. Our unit has seen people being laid off that have young children, children in college, some are middle aged employees that have worked many years at GE and have no chance of getting another job in today’s economy. They have no idea what they are going to do. Although I am so thankful for having a job for the meantime, I wish we would of had a choice of maybe taking a pay cut to save some of our co-worker’s jobs. Most of us worker bees live paycheck to paycheck but I am sure that we could of all came together and given up something to keep some co-workers employed. It is hardbreaking to see people leave. It seems, given that, that other execs could follow your lead and to think that they may be saving some jobs by giving up their bonus.
Thank you Mr. Immelt for thinking of someone other than yourself. We certainly need more people to do that during these times. Thank you.
Dear Mr Immelt,
I believe everyone can learn from your example – that no matter where we are at, there is someone less unfortunate and we can always forgo our luxury to make it better for the less unfortunate. I’m encouraged by your effort. You will reap the benefit!
Yet another example where Jeff leads by example…
Thanks Jeff.
It is a great gesture, and appreciated, but Jeff Immelt deserves the 2008 bonus and long term incentive plan. The earnings progression from 2001 thru 2007 was phenomenal, and no amount of peering around corners could have predicted this economic nightmare. Jeff’s integrity as a leader is most apparent……if we could just have some comments from the GE populace on whether MSNBC content furthered NPS improvement and was not tarnishing the great Monogram?
Jeff,
I am just few months old in GE Group.I joined GE after spending long 18 years with other engineering company.You have shown a great character by foregoing your bonus in tough global economic crisis.Today i am very proud working for a company who has such a great leader.I am sure and very confident that GE will grow multifold under your leadership.
It is a great learning for the employees like me.I think all of us have to do our little bit to come out of these global financial crisis.
WOW – In such a tough environment, I couldnt imagine the difficulties and turmoils this man & his board have faced over the last 16 months, managing 300k people worldwide not to mention all the other facets of the role, I hope you’ve set a worldwide trend. – Bravo Jeff!!!
Mr. Immelt,
As a rank and file employee, I do appreciate you declining your bonus and "taking-one-for-the-team" in light of current economic circumstances.
I do belief we are fortunate that you were choosen as CEO back in Year2001 instead of Bob Nardelli. The recent fortunes of both Home Depot and Chrysler validates the rightness of the boards’s decision of choosing you as CEO, rather than Mr. Nardelli.
Also, Kudos for the programming at MSNBC. MSNBC provides a counterweight to FOX. A counterweight that was previously lacking in the media marketplace.
We work in a strong company, we´re going to show why GE is one of the largets corporations in the world, the base: it people.
Once again people in the world see a great company like GE led by a great leader like Jeff. This is particularily important to raise people’s confidence in today’s global downturn time.
Jeff, while I see a lot of comments here lauding your decision to forgo that $12 mil. bonus, I can’t in all honesty share your pain. Having seen the train wreck of corporate greed firsthand, and seen American jobs go overseas so you and other execs. could reap higher profits at our expense, your "sacrifice" isn’t exactly admirable. Your annual salary dwarfs that of the President of our nation and is appalling to say the least. Unless you somehow have managed to right all the wrongs in this world as if you were God Himself, no human rates that many million $$$ in their paycheck. I challenge you and all the other CEO’s to try living on what you hand out to those who actually do the work and make the products that garner you such acclaim and award. While some here may feel the need to pat you on the back for a job well done, I’m one on the other end trying to make ends meet on less than $30,000.00 in this economy. Let’s see you do it. Rank is what you wear, respect you have to earn, and I’m not impressed.
Hi, Jeff
It is our great honor to have a leader like you. Very appreciate your decision and courage to work with all GE employee during this hard times.
I have one question, GE is very aggresive on revenue, cash flow, cost saving, but what’s the social value GE contribute to? What is the GE value as it exist? I remember once we have slogan as "We bring good things to life" but now we didnot have such kind of value that announced to motivate employees. What do you think of it? What support you to work in GE for these years?
Thank you.
Hi Jeff,
During this tough time it is certainly a very good decision. It makes me proud that I am working for such an good orgainzation.
Thank You.
So impressive, LEADERSHIP at its summit. I am very pleased to work with GE under your leadership.
Jeff,
It would be hard to pass on $12m, but this proves you are the leader GE needs in these difficult times.
Hi, Jeff
Thank you for standing together with ordinary Employees and share the same feeling at this tough time. I’m proud to be working in this great company. As General Electric,do we have plan to innovate the electic engine and cells for Auto industry? May be we can save GM by this green Innovation.
Thanks Jeff.
Jeff,
Hats off for making such a remarkable decision.You lead by example to other top leaders of the company make their contribution in their bonus and to save the company in such a bad recession.
Thank you
This is the best illustration of top-down approach that I have ever seen. Jeff, your leadership style is very inspirational indeed.
Greatness yield from Generousness. Real happiness lies in making others happy.
Dear Sir ! its you and only you who could make these 2 great philosophies happen.
Wish to be led on and on………………
I am pretty young blood in GE(two years). There are very few companies people would love to stick on from a long term perspective and I strongly beleive that GE is definitely one among them. These are because of the the culture, leadership, decision making, committment and the focus the company gives on Integrity. I wish the company to cross even the vertical limits. We are very proud to have a person like you leading us.
I was just wondering out loud the other day about when, the virtues that our parents taught us, had become liabilities as opposed to assets. I believe it started when the president of the U.S.A. went on national television and lied to all of the people that he was elected to represent and made the infamous "I am not a crook" statement.Thank you for showing me that the virtues that my parents and yours held dear are still assets and not liabilities
$112 Million for the top seven GE Executives.Good Lord is anyone out there …. anybody at all. Jeff Immelt says that the bonuses paid, reflect their contibution to GE.Tens of thousands of GE Internal jobs lost,industries around the world that GE aquired are now in turmoil as GE retreats.manufacturing that is vital to the U.S exiting recession are now offshore.GE were and are the champions of Globilization and now the U.S is on the road to bankrupcy.Immelt misses the point,Wall St misses the point.No Executive contributes to any Company in the greatest of times to these obscene levels.If Immelt and others do not take this opportunity to correct such obvious extremes,I fear for the world.Immelt inheirited from Welch a flawed pyramid model relying on avaricious growth making it a certainty that current events would take place inevitably at some time.If GE is going to survive over time it will take a Leadership that perhaps the world has not seen.This has gone way beyond shareholder value.These guys are not the best and the brightest….they are just the caretakers of a flawed model that borders on evil.$112 million bonuses based on contribution to GE. If Jeff really believes that,well, then he is really is stupid.More likely he is too weak to change the internal culture than will ensure GE’s demise.It’s just sad that the world and the US will pay the price.
Hi Jeff,
You have touched my heart! This is a greatest gesture and example you have put in front of us. It reminds me once you said, “With great power come great responsibilities”. You are the greatest leader I have ever seen/read so far. Thanks a ton for leading us in difficult time with flare.
With warm Regards
Rajiv Pandey
Jeff is a true Leader, he is leading by example.I am really proud to work for GE.One can only learn true leadership from only true leaders and thats what we have here in GE, God bless Jeff and GE.
Waiving 12M is a gesture, of highest order, unheard of so far. Leaders from GE are known for high standards of integrity. Jeff’s generosity adds a new dimension to "WHAT IT MEANS TO BE A LEADER" and a new feather in GE’s cap.
This is a copy from the MarketWatch blog on 2/18/2009…one of the author stated that "GE is leveraged 140:1. He should be fired for allowing that to happen"…
I thought that is a vicious and toxic intent to mislead the market…the 12M bonus seems to be very minor and is not the essential core issue, the real question is who is capable to lead GE camp to defeat such sabotage intent to bring down the GE market…
“Fair” and “reasonable” are the optimum words here. Our top executives are given very decent salaries. Given the current financial environment, a good salary is, in fact, what is fair and reasonable, period. Millions of dollars in bonuses should be eliminated in the face of this financial crisis. GE employees of 30+ years (myself included), who have saved each and every week by putting money into their GE 401K, cannot retire. Thus, it is disheartening, to put in mildly, to read about $100M of bonus money being paid out to our top executives. Thank you, Mr. Immelt, for this noble gesture. It should be applauded but shouldn’t we encourage the same level of integrity from each and every GE employee?
As a GE employee, I believe that Jeff’s decision to forgo his bonus of about $12 Million this year sets an excellent example for all of us to exert all out efforts to reduce our operating costs and increase productivity in 2009 and beyond. As a GE Employee, I recommend all other executives to follow Jeff’s foot steps… “Fair” and “reasonable” are the optimum words here…
Been a big GE supporter for a while on this and a couple other forums. However, great leadership is more than just gestures of not taking a bonus (esp. when your salary is what it is).
At some point, you have to fight back and preserve shareholder equity. If you’re sitting on $50 billion in cash, and you say that the company is sound, but yet you have a single digit stock, then that’s not right.
You have the power to change that Mr. Immelt (you too BOD). About time something is done to shore that aspect up as well.
$112 million for the executives?? As a manager I am asked to layoff employees that work for me at $14.00/hr and are super great employees.
Greed got us into this mess. Let’s see in a couple of years what the executives really get/got when we circle back.
Leasership, you must be joking. A 75 percent decline in stock price since becoming CEO does not a leader make. Immelt should give back every bonus he has received since 2001 and take a cut in pay. If he and the G.E. Capital management group he indirectly heads had been more alert and/or less greedy perhaps they would have foreseen what was happening in the subprime market and could have headed it off. Not losing as much as others have lost is not something worth bragging about.
I used to work for GE a few years back but somehow I just can’t get over the days in GE. I constantly keep in touch to find out whats happening and learn how leadership works in GE.Jeff’s act is true leadership personified,I wish all other companies had leaders like you.The economy would be a much better place to do business.GE keep up the good works.
I am a new comer to GE and just amazed by the stunning leadership we have here. Some where I read " A true Leader should be an example". I get to see that in Jeff.
Thank you Sir.
I am so glad to know that there still exist people in this world that are driven by principle, and not by money. I am thankful to be led by such a strong leader as Jeff Immelt. I commend him for his strong character and moral values. I feel honored to work for such a company as GE. It inspires me to continue to do my best in my job.
CEO Jeff
Do something now to save your Company before it is too late!
Take the 15 Billion that you got back in Oct and put a floor underneath this stock by standing on the buy button. Failure to do so and this stock will probably be at $7.50 before Apr earnings and then what if you miss? $4?
Before this nightmare ends
and I have to think it will go on for at least 1 more year
GE will bottom at?
$7.5
$4
$2
This Company is going BANKRUPT?
Bear Markets are devastating but enough is enough!
15 Bullion buys 1,612,903,226 shares of this stock at $9.30 there is no better use for the money.
Don’t stand there like a dummy, do something NOW!
Tomorrow will be too late.
GEpumper™
Mr.Immelt,
May God continue to bless you with His wisdom as you lead this company. Keep up the good work!
Take care,
Margaret Jo Milburn
Daily Hire Television Engineer-NBC 5 Chicago
Commonly we sees prominents positions but not capables to develop a solid leadesrhip through theirs Biz Accumen without title authority. Jeff you are the one to shift out paradigms. Thanks for such a great lesson.
DBA abd Menes Rafael
Mr. Immelt,
I was on the fence to double down on my stock purchases of GE. Your actions have swayed me to believe that the stock price is not a complete reflection of GE’s management and that GE is a strong long term buy.
I appreciate this ‘fear driven’ market to find great companies on the cheap.
Continue to set the pace.
Jeff, I am not part of GE family, but I know the history of GE. Your command reflects the leadership with humility. I have no comments on how much you usually get paid, because you have invested in your career and worked for it, and so you deserve it. During an interview for a graduate programme, a professor told me a frightening and meaningful statement – “being part of this school, you are going to deal with the life of people.” This decision of yours in a difficult time does give life for people and does help the corporate to emerge out stronger.
In delicate times as today, with all the news of fear with the frontal attack on GE from analyst’s focused on the short side on investing. Immelt MUST focus on the best GE has to offer, still making money, 50 billion in cash, new business opportunities headed GE’s way not to leave out when this is past, GE comes out of this debacle far ahead of it’d competitors. He must accentuate the best in GE
Mr. Immelt,
While your action of not accepting bonus is commentable, it does nothing to ease the pain for share holders like my family who lost over 80% of life long savings held in GE stocks. I believe 12 millions are just drops in the bucket for you. GE shares had not performed at all since you took over as CEO, either in good or bad stock market environment. If you feel for the GE share holders, please show some true leadership in actions to support the GE share price. Your continued silence is simply taken by Wall Street that all the fears about GE is true. Our lifelong loyalty and trust to GE management appear to have been misplaced. It is a real shame. May be I should dump my shares too.
In response to Su-Ju-Lee,
Given the cold shoulder Mr. Immelt addressed the negative commentary, or better accusations from the Deutsche Bank and others; as shareholders our only recourse is to effect a change of management and board. With the next proxy and shareholder meeting in Orlando, Florida April. our displeasure with management will be up front and LOUD
To the Board,
I have great respect for Mr. Immelt. However, forgive the analogy to The Godfather, but it’s time to bring back a CEO who is a proven "wartime consigliere". It’s time to bring Jack back.
Immelt, time is not in your favor
I commend Mr. Immelt for forgoing his bonus. It shows great leadership and integrity. However this is lost on his underlings who accepted their bonuses. Shame on them. Hopefully you’ll learn from Mr. Immelt.A person making $50K a year has to work more than 20 yrs. to make what you make in one yr. in bonuses alone. Just thought I’d add that in to put things in perspective.
Correction—A person making $50K a year for over 40 years will still have made less than what your bonus is for one year.
You’re still a screwup.
Dear Jeff
It is a huge personal commitment to forgo your ‘08 bonus, We are living in turbulant times ….the shareholder’s stick is whipping GE stock price and performance as a diversified, out of focus entity …GE has to look at alternatives ie , look at Nokia’s example and it seems that GE stocks will continue to slide from its present value by this financial year if we do not act fast and isolate the hemmorage in cash flows from our financial services unit .
Wish You and the senior management all the best in making the transition less painful and smooth for all stakeholders in the financial services unit of this great Company
I think not many executives today who are really willing to release a $12M for what they have done for the whole year. Like someone says "hard work" has to be paid off, but Mr. Jeff is kind of a leader who proves himself different than others, as Prime Minister Gordon Brown says, "In extraordinary time requires extraordinary action. I am so proud of you Jeff
Dear Mr. Emmelt your decision not to accept compensation for 2008, makes me proud to say that I work for a leader of integrity an moral conviction and wholeads by example. THANKYOU
The current leadership is just an extension of Jack and he built this house of cards largely on Capital. Do any of these guys really think they earned these bonuses based on their leadership??
An interesting read is "Who Killed Westinghouse?" – not to conclude that GE will follow that example but the comparison is hard to ignore. – MEM
Hey Jurgen – How is Jeff leading by example if no one else is giving up the bonuses?
jeff don’t listen to the hatrz! they are so short-sighted. i wish all ceos were as forward-thinking, honest, and intelligent as you!!! as long as you’re around i’ll always be a ge fan! xoxo
I have spent 40 years working for this Company and contributed to my pension and my 401K each month.
I was beliving that the GE stock and Elfun funds are in good hands and that the payment to the company leaders was justefied and presently I can not belive that we got to the point that there is not much left. We have 148 VP,s and that is way beyond what I feel it takes to manage the leftovers. Lets turn back to the description of General Electric.
Mr. Immelt made the correct choice in surrendering his bonus based on the condition of this company and the impact to its shareholders. Especially for those who are nearing retirement or have just retired. But what about the rest of the Executives? Nothing like making a stand to go into battle and have the rest of the inner circle run the other way. I mean we are talking about giving up bonuses, not salary. I am also alarmed to see that the head of GE Money had the largest compensation package. Maybe I’m missing something, but I was under the impression our Financial Arm is over extended and one of the main reasons our stock has gone from 40 to 10. (Plus or minus a couple of dollars, but at this point who is really counting.) At least we still collect a nice dividend for all the shares we have in our 401K!
For those of you who feel you are on a first name basis with “Jeff” and think they are competing for a piece of Mr. Immelt’s forfeited bonus, please keep up the writing. It is very entertaining and nice to see all the…well you know…that work for this company.
A noble gesture on Mr. Immelts part, it would be great to see other high-level execs within the GE organization following his example.
Leadership in ending all bonus pay is what is needed when GE stock declines 70 plus percent. It looks bad to outsiders and the Capital is needed by the company.
It is give back time.
Having read all of the above commentary, one thing stands out above all. Lack of attention to detail. The plethora of misspellings grammatical genocide is apalling. It’s no wonder GE is in such horrible financial condition and our leadership is bankrolling themselves while abusing the workers who put them there. Wake up and smell the toast burning people. So our great Jeff Immelt passes on his $12 million bonus. Whoopie!! I’d gladly settle for .01% of his worth. While some of you herald him as a hero he goes on his merry way oblivious to what the day-to-day hourly folks try to live on. You want to impress me? Decree that NO bonuses will be paid out until and unless common sense management once again rules at GE. All the hype about integrity and honesty is just so much window dressing and hold no more sincerity than a Saturday morning cartoon.
Once again the CEO of this Company has been caught in another lie.
He guaranteed us the dividend was safe through 2009 and we are only 2 months into it!
Whats next?
Resign now!
Way to go Jeff ! Once again you’ve proved you’re a liar. Resign now and take your BOD with you. You have ZERO credibility.
Yet another surprise. Once again company management promises one thing then delivers another. How can a compnay survive when management is so out of touch with reality?
I read in the 2009 proxy statement that unlike Jeff I., Keith Sherrin and Mike Neal have been awarded and accepted a $2MM cash bonus each and Mr. Neal a base salary raise of $250K (1.5MM to 1.75MM). Using the phrases/rationale for cutting shareowner dividends by 68%, certainly a case can be made for canceling their bonuses and keeping Mr. Neal’s salary the same as a “precautionary action” and a “prudent measure” to assist in “achieving capital and liquidity goals” for 2009, while maintaining top executive salaries at a “competitive level”–who’s going to pay them more after their leader blows a 1st qtr. 2008 earnings forecast 2 weeks before the qtr. ends, and then backpedals on maintaining the dividend in 2009 by 68% while awarding them each a bonus and Mr. Neal with a 17% raise ??? Understanding salary action happened in June,2008, shareholders should expect the MDCC to make appropriate adjustments this coming June as an independent representative body for all shareowners. Who authors the MDCC section on compensation? Corporate staff or an MDCC member?
does ge plan on restoring dividends after finacial crises for long term holders of ge a 68% drop in dividends is a big loss for long time shareholders is the day of buying and holding a stock work anymore will ge board take a 68% cut in pay stock price down 70% its ok the widows and orphans who depend on the dividends can handle it theyll probably give their $300 stimulus check(bonus money) to charity the poorest aways seem to give the most SHOULD I SELL AT A LOSS?
I’d just like to know the goals were which allowed Immelt to "earn" 12 million dollars in bonuses? He so "graciously" turned down something that was not warranted in the first place.
I’m sorry but I think changes need to be made at the top including the BOD.
I retired in March 2005 after GE sold the fan motor business to Regal Beloit. If total GE management wants to support GE Retirees they should for go their bonuses and give long time investors some confidence in their abilities to run the Company in the worst environment I have ever seen.
As a 36.5 yr employee of GE and being retired for just over a year,—I am shocked and dismayed of the stock price—the dividend cut and the piss poor performance of the CEO. board and any higher management of GE. I depend on the dividend money to pay car insurance, taxes and fund my lifestyle–the lifestyle I can cut back—no one will bail out my taxes or car and home insurance. I put my trust in GE SSP and left all my holdings in stock—how dumb of me not to pull out when I retired. Take anyone in GE’s rank’s that make over 200.000 and cut their pay to 100,000 and I mean everyone that should bring GE back around–if you can not perform any better than you have — maybe McDonald’s is hiring —???? But then stand in line, us long term stock holders need the jobs first to supplement our income.
I am a 35 year retired employee and I was quite surprised to receive a letter from the Chairman and CEO dated 2/20/2009 stating "GE’s Board has voted to pay the dividend at the current level through the first half of the year" on the same day I read in the paper that the dividend was being cut 68%.
It is no wonder the company is in so much trouble if we can’t plan at least a week in advance. To say I am disappointed is a total understatement. In my working days, people would have been fired for less.
Under your leadership Mr. Immelt, I have watched my retirement evaporate. While I was with the company, I was strongly advised to invest my retirement funds in GE stock.
I have seen the stock sore to pre Jack Welch retirement to $159.00 per share, then came the big split. Shortly after the split, Mr. Slick Jack retired and you took the helm. Since then the stock has continued to decline in value, and thousands of hopes of retirement have vanished.
Good going Mr. Immelt. Keep up the good work and continue to draw your outrageous salary.
The reality is hard decisions had to be made to keep GE workers employed. No disrepect to Mr Immelt but he’s no hero for not accepting a bonus, it would have looked really bad to accept a $12 million dollar bonus while hundreds of GE workers world wide lose their jobs. Haruka Nishimatsu, CEO of Japan Airlines, is a true hero he ‘walks the talk’, perhaps the current executives and senior management need to take lessons from him.
Dear Mr. Immelt and fellow shareholders:
In I believe 2004, I spoke to you at the shareholder’s convention in Louisville, KY, concerning the outsourcing of GE to foreign countries. At the time, few seemed concerned that our manufacturing plants were leaving our nation’s shores. I look back on the time now and wonder if you or anybody that was in attendance have ever thought that maybe the lack of "Made in USA" could be the root of our nations problems. When our Jonesboro,Arkansas motors plant was moved to China, I still left most of my savings in GE stock. Now just a few years later, that too has dwindled to nothing. Feel free to call me if you ever would like to admit that I might have been just a little right. I am sure you still have my personal info on file.
JEFF: THE REASON YOU DID NOT TAKE A BONUS IS CAUSE YOU ARE AFRAID OF GETTING THROWN OUT OF YOUR EASY JOB. STOCK HOLDERS SHOULD THROW YOU ALL OUT AND START ANEW. MILDRED BUSCH
I feel the monies saved on the dividend cut should be used for stock buyback, in the end we would all gain from such a move.The more support we show, the stronger we get. Think long term, liste to Warren Buffet, he didn’t accomplish what he did with a cut and run philposophy.Stop following the Judas goats and think for yourselves.
GE took TARP money, all of GE employees including scum and liar jeff Immelt should follow the same rule as the employees of banks that took TARP. No 3.3 million salary either.
Sam,
Megan from GE- GE has not participated in the Troubled Assets Relief Program (TARP).
Please read: http://www.gereports.com/safety-first-for-our-investors/
I think those are really harsh words for GE’s CEO – I think that he has done one thing that no other CEO of any company around the world has done, he’s sacrificed his bonus and taken a pay cut, hey Merril Lynch mob rewarded themselves $1.6Billion just before signing off, and I dont see a blog site they’ve set up for us shareholders to rip into em, actually can you tell me another company thats set up a site where all of us can chip these board members or have our say, no most of em are cowards, the type of leaders that if you were in the front lines these guys would be 1000 miles behind ya. I commend Mr Immelt, and I certainly wouldnt want to be in his position, running GE would be like running a country but much more difficult, as you done make the rules. I do call on Mr Sherin to Give up his 2008 $2.5m, if anyone could have predicted a bad period you’d think the CFO would have, I also call on Mr Neal to forgo his $2.8m bonus, Mr Rice his $2.7m, Mr Denniston his $1.8m, Mr Nissen and Mr Wright if you’d come out of retirement and give back your $1.3m & $2.7m respectively then this would say you gentlemen have done your bit for your/our company in these trying times.
I can’t believe that any one person is worth even $12,000,000. I am truly amazed that "former" employees are worth $22,000,000!!!! I obviously did not negotiate my retirement very well.
What is wrong with this picture? Shares are going South and CEO’s still get theit millions of dollars!
Reports are still glowing on how well GE is doing. Then why are stocks in free-fall? I still can’t believe my entire life savings have gone down the tube but I always thought GE was safe.
12 milion dollar! these bonusrates are from outher space!
They are the cause of the economic crisis.
I hope that Barack Obahma will strike these guys who think they can fill there pockets!
Simplistically the so called, free enterprise systems, as practiced in the American economic domains today are nothing but a ‘modernized’ mirror image of the ancient ‘FEUDAL SYSTEM’
THEN: No government, (elected or other wise)protecting the serfs, working and investing people.
NOW: The big Corporations, dysfunctional government etc. (Still no investor protection from irrational or incompetent corporate management.
It appears that this site is for employees who want to post something hopeing it may save their job in a pull back. I am NOT an employee but am a stockholder. I retired recently from one of the largest off Wall Street brokerage houses in the country, so I have seen and been around "Money".
So, one declined his $12 million BONUS. Really, how much money is Obscene? That’s not even his salary.
WAKE UP! The interest on 12 million at 2.75% (which is what most large CD’s are paying now) is $330,000. INTEREST ALONE. That is not his salary! It’s his bonus! If you perform poorly, and say you didn’t perform as poorly as your conpetitor, does that save your job?
How much money does one person need? How much can he spend, when most of his needs are paid for by the employer. I see this needs to be "approved by the site owner so I am sure it will not appear.
I believe the bonuses are far too disproportionate to value given. Unfortunately I was forced to sell some of my GE investments, because the returns last year were exceedingly lower than expected. Not enough to cover my bills at the time. I have always had high regard for GE and for that reason have held onto the small amount of stock that I have, even though it dropped its dividend to a near useless $.10 per share. I am hoping that this coming year brings returns that are meaningful to the small investor.