General Electric last year eliminated bonuses for its senior managers for the first time in its 126-year history, saving millions of dollars after losing money in 2017, the industrial conglomerate said.
All but one of its top executives did not receive a bonus, the company said late Monday. The changes led to steep declines in compensation and reflected the company’s poor results in 2017, according to the company’s annual proxy.
Former CEO Jeff Immelt, who stepped down on Aug. 1, received $8.1 million in 2017, down from $21.3 million the year before. Compensation includes salary, bonus, stock, options and other income. GE eliminated Immelt’s 2017 target bonus of $5.4 million and cut about $1 million from his salary.
Current chief executive John Flannery earned $9 million in salary and other compensation last year. The company eliminated a $3 million target bonus for him, GE said.
The company also eliminated bonuses for former chief financial officer Jeff Bornstein, former vice chair of business innovations Beth Comstock and John Rice, the former CEO of GE’s global growth organization. The savings on bonuses and other compensation totaled more than $10 million.
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