Board/Senior Executive Accountability

The GE Board of Directors and the GE Risk Committee play vital roles in the oversight and management of the Company, providing involvement, objectivity and accountability.

The primary role of the GE Board of Directors is to oversee how management serves the interests of shareowners and other stakeholders. To do this, GE Directors have adopted corporate governance principles aimed at ensuring that the Board is independent and fully informed on the key risks and strategic issues facing GE. GE has met its goal of having two-thirds of its Board be independent, under a strict definition of independence. Today, 15 of 17 GE Directors are independent.

The GE Board held nine meetings in 2010, and each outside Board member is expected to visit at least two GE businesses without the involvement of corporate management, in order to develop his or her own feel for the company. The Board focuses on the areas that are important to shareowners–strategy, risk management, leadership development and regulatory matters–and in 2010, received briefings on a variety of issues, including U.S. and global tax policy, environmental risk management and reserves, pension and healthcare plans, financial structure, liquidity regulation and ratings, service contract performance, credit costs and real estate exposure, controllership and emerging rules, and managing brand value and reputation. At the end of the year, the Board and each of its committees conducted a thorough self-evaluation.