General Electric (GE) has declared that CEO Larry Culp has agreed to massively reduce his pay as the company’s profits continue to fall.
This year, Culp’s employment agreement had him getting a $15 million equity incentive grant.
But instead, he’ll only receive $5 million, based on a company proxy statement filed Thursday, March 17.
The General Electric board’s compensation committee said: “Shareholders have been overwhelmingly supportive of Larry and the action in 2020 to extend the term of his employment, but there was shareholder concern around the timing, size, and structure of the 2020 retention grant made as part of the extension.”
Culp’s total compensation nearly trebled to $73.2 million in 2020 from $24.6 million in 2019.
It came in around $22.7 million in 2021.
Meanwhile, General Electric’s revenue declined nearly 16 percent to $75.8 billion in 2020, with much of the sales decline coming from the conglomerate’s Aviation business. It fell a bit more to $74.2 billion in 2021.
General Electric Healthcare’s revenue declined to $17.8 billion in 2021, down from $18.0 billion in 2020 and $19.9 billion in 2019.
The company sold its BioPharma business to Danaher for roughly $20 billion in 2020.