Variable Compensation Packages

GE’s compensation programs—incorporating salary, bonus, stock, long-term performance awards, etc.—take into account the general business and socio-political environment in which compensation decisions are made. The Management Development and Compensation Committee (MDCC) of GE’s board of directors and GE management focus on executive compensation with the goal of achieving the right balance of incentives to appropriately reward and retain the best executives and maximize their performance over the long term.

GE has successfully weathered many economic cycles over its 130-year history by hiring, training and developing disciplined leaders who focus on achieving our long-term strategies, thoughtfully managing risks, and creating and preserving shareowner value. Many of our top executives have spent most or all of their careers here. They have unparalleled domain expertise and are deeply invested in and committed to the Company. Our compensation programs don’t reward them for taking outsized risks that produce short-term gains. We reward our executives for consistently making smart decisions over the course of their careers here that carefully balance risk and return, advance GE’s strategic objectives and deliver long-term results for shareowners.

While we focus on long-term performance, we do not ignore current performance. We evaluate annual performance in the context of progress made against long-term strategies, results relative to annual objectives and actions to manage risk and preserve shareowner value. GE compensation programs provide for variable rewards depending on performance. Importantly, because we take the long view, good years do not result in extravagant payouts, and in bad years, compensation is appropriately adjusted weighing the year’s performance and long-term performance.

The GE board is confident that the Company has the right executive compensation systems in place to foster the management performance that is central to creating long-term shareowner value.