A majority of shareholders at General Electric have rejected pay packages for senior officers, including CEO Larry Culp, who was set to receive a package worth $73.2m for 2020.
Nearly 58 per cent of shareholders rejected GE’s pay packages, a strong rebuke to executives of the industrial company, which is in the middle of a challenging turnaround and has laid off thousands of workers.
“While we are disappointed with the preliminary results of the vote, we value and respect the views of the shareholders,” the company said.
“The board will take those views into consideration as we evaluate executive compensation.”
The shareholders’ vote is advisory, not binding.
Nearly all of Culp’s giant pay package was going to come in the form of stock options, according to reports.
The industrial giant last August lengthened Culp’s employment agreement to 2024, with a one-year option to extend after that.
As part of the agreement, the company granted him new shares. There were also lower financial targets for Culp to meet to receive the new shares.