GE Is Making a $300 Million Bet on Its New CEO

By Anonymous

Larry Culp’s compensation could soar, if stock price reaches certain thresholds

General Electric Co. has agreed to pay its new chief executive, Larry Culp, as much as $21 million a year for four years—with the potential for hundreds of millions of dollars more depending on GE’s stock performance.

Mr. Culp, a board member who succeeded John Flannery in GE’s top job, signed an agreement with the company that pays him $2.5 million a year in salary and an annual bonus with a target of $3.75 million, the company said in a securities filing after the market closed Thursday.