General Electric Co Chief Executive Officer Larry Culp sees his total compensation increase by more than 60% in 2022 after agreeing last year to reduced annual stock awards.
The CEO’s total compensation in 2022 will be $8.2 million, down from $22.7 million in 2021, according to the company’s annual proxy filing. The 64% reduction was expected, and was mostly due to a decrease in Culp’s annual stock award. Last year, Culp and GE’s board agreed to reduce the CEO’s annual stock award for 2022 to $5 million from $15 million.
GE cut the incentive in response to shareholders, who in 2021 voted against a revised pay package that lowers the bar for Culp to collect equity-based compensation at the end of his tenure if GE’s stock price reaches a high enough level.
Culp’s annual bonus was also reduced as part of the company’s performance, to $525,000 last year from $4.2 million in 2021.
GE shares were little changed in extended trading in New York. The stock has gained 41% this year through Thursday’s close.
In 2021, Culp announced plans to split the iconic conglomerate into three companies focused on aerospace, energy-related equipment and healthcare. GE spun off its health care division in January and plans to complete the separation early next year.