GE BOSS GETS $47M BONUS FOR KEEPING FIRM AFLOAT BY FIRING 13,000 WORKERS
Two years after taking the helm at a slumping General Electric, Larry Culp has secured a huge reward: A bonus of around $47 million and the potential for much more, Luc Olinga reported for Agence France Presse (AFP).
Culp masterminded the recent layoffs of 13,000 employees from its aviation division and massive asset sales, including its iconic product, the light bulb, and austerity measures to check the conglomerate’s hemorrhage due to the COVID-19 pandemic.
The head of the GE labor union called the package "absolutely outrageous," especially after the company announced some jobs would be shipped overseas.
"How can GE justify this type of enormous bonus for its CEO, while workers, their families, and communities are suffering due to layoffs and offshoring?" Carl Kennebrew, president of the Industrial Division of the Communications Workers of America (IUE-CWA) said in a statement.
The ex-CEO of Danaher, Culp took over as chief executive in October 2018 and was paid almost $25 million in 2019, but he could reap as much as $230 million if GE meets additional targets, according to securities filings reviewed by AFP.
He has been credited with stabilizing GE's finances through a series of austerity measures, including asset sales and layoffs. Even with the asset sales,
GE still has heavy debt and operations are challenged by turbine overcapacity in its power division and still-weak demand in aviation.
GE reported a 2019 loss of $5.4 billion, compared with $22.8 billion in 2018. The company reported a $1.2 billion loss in the most recent quarter.