15:37:00
Fun Facts
March 15, 2016
Reuters News Agency
The General Electric Company (GE) in a filing Monday with the Securities and Exchange Commission revealed that Chief Executive Officer Jeffrey Immelt raked in a hefty $33 million in salary in 2015.
On its own, this marks an 11% reduction from 2014 due to the slower rate of increase in the value of his pension. Adjusting the pension value change, Immelt's total 2015 compensation rose 14% to $23.4 million. This is even as his base salary and bonus pay of $3.8 million and $5.4 million, respectively, were little changed from 2014. (See also: Will General Electric Shock Investors in 2016?)
"Immelt performed extremely well in 2015 with one of the best performance years in the company's history," GE said in the filing.
"Well" is an understatement. Last year, under the 60-year old Immelt, General Electric saw a dramatic changeover from a bloated conglomerate to an industrial power. At the same time, Immelt not only boosted the company's industrial manufacturing capabilities, he also shed the bulk of the company's struggling finance business. In addition, he led the acquisition of Alstom SA's energy business. (See also: General Electric's 8 Most Profitable Lines of Business.)
Moreover, not only did the Boston-based company grow its revenue and profit margins throughout 2015, investors were also rewarded for the performance with an almost 25% rise in stock value, making GE one of the top performers in the Dow Jones Industrial Average.
Also on Monday, GE said that Douglas Warner III and James Cash, two of its longest-serving directors of 24 years and 19 years, respectively, will not seek re-election to the board. The company also announced Robert Swieringa will retire after 14 years on the board. To fill the three vacancies, GE said it will nominate Lowell McAdam, CEO of Verizon Communications Inc. (VZ), Peter Henry, a finance professor at NYU's Stern School of Business, and Sebastien Bazin, CEO of hotel chain Accor.
The Bottom Line
GE stock closed Monday at $30.27, down 0.23%. The shares have declined 2.83% year-to-date, against a decline of 1.19% for the S&P 500 index. General Electric stock has a consensus buy rating and an average analyst 12-month price target of $32, suggesting a 5.7% gain from Monday's close. The company pays a 23-cent dividend that yields 3.03% annually, about one percentage point higher than the S&P 500 index.
Read more: General Electric Announces CEO Pay, Board Changes (GE) | Investopedia
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