General Electric (GE) announced that CEO Larry Culp will not receive shares worth $20 million – this after the company failed to meet the minimum performance threshold required to receive the reward.
As part of the move, which the board of directors decided on last month, $5 million was deleted from the $8.2 million worth of compensation that the company reported it would pay Culp for 2022, as well as a share of stock that was originally valued at $15 million, when it was awarded in 2020. The company also canceled grants to other executives due to poor performance.
As of the end of 2022, the value of the groups of shares awarded to Culp was estimated at $14.4 million. GE stock is down more than 11% in 2022. However, since the beginning of the year, the company’s stock has jumped by 38%.
According to a report in the Wall Street Journal, Culp can still receive a share of performance-based shares awarded to him in 2020 following a two-year extension of his employment agreement that was executed about a year ago.
The maximum reward Culp can receive is $146 million and depends on the share price reaching a certain level over 30 consecutive trading days until August 2024.