GE's CEO paid $14.2 million in 2007; share awards canceled
But GE disclosed that last month it canceled $7.3 million in performance share units due to Immelt because the company's total shareholder return failed to meet a key stock market benchmark.
The Fairfield-based industrial, financial and entertainment conglomerate paid Immelt $3.3 million in salary -- the same as it did in 2006 -- and a $5.8 million bonus. Immelt also received other compensation of $396,267, primarily from his use of the company's aircraft.
He received $4.7 million in what the company estimates to be the fair value of stock grants in 2007.
The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits, and they sometimes differ from the totals companies list in the summary compensation table of proxy statements filed with the Securities and Exchange Commission.
Overall, the company said Immelt "performed very well in 2007," meeting or exceeding targets for revenue, earnings, earnings per share and other benchmarks, GE said in the proxy.
The conglomerate gave Immelt 150,000 shares of what it calls performance share units, which convert into GE shares conditioned on benchmarks such as cash flow improvements and shareholder return. He received 250,000 shares in 2006.
But last month it canceled 215,000 other performance shares, valued at $7.3 million, that were issued in 2003 and 2006 because GE's total shareholder return had not met or exceeded that of the Standard & Poor 500 index over the performance period that included 2007, GE said.
Immelt, 52, succeeded Jack Welch as chairman and chief executive in 2001. He is credited for driving GE's growth, particularly overseas, with sales of aviation, energy, oil and gas, transportation and water and process technologies.
But he also acknowledged to shareholders last year that, despite double-digit earnings growth, GE must grapple with sentiment on Wall Street shifting from mega-sized company stock and demands by investors for GE to perform consistently as it shifts its portfolio.
The Fairfield-based GE sold its plastics division for about $11.6 billion in 2007 and, citing the troubled subprime mortgage industry, sold its U.S. mortgage business for $117 million.
GE said in its report that Immelt "continued to build a more valuable portfolio in 2007, obtaining a highly competitive price for GE Plastics of $11.6 billion."
GE shares closed at $33.40, up 26 cents.
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