General Electric Co. Chief Executive Officer Larry Culp saw his total compensation decline more than 60% in 2022 after agreeing last year to a reduced annual stock award.
The CEO’s total compensation in 2022 was $8.2 million, down from $22.7 million in 2021, according to the company’s annual proxy filing. The 64% reduction was expected, and mostly due to a decline in Culp’s annual stock award. Last year, Culp and GE’s board agreed to reduce the CEO’s annual stock award for 2022 to $5 million from $15 million.
GE cut that incentive in response to shareholders, who in 2021 voted against a revised pay package that lowered the bar for Culp to collect a windfall in equity-based compensation at the end of his tenure if GE’s share price reached high enough levels.
Culp’s annual bonus was also reduced as part of the company’s corporate performance, to $525,000 last year from $4.2 million in 2021.
GE shares were little changed in extended trading in New York. The stock had gained 41% this year through Thursday’s close.
In 2021, Culp announced plans to break up the iconic conglomerate into three companies focused on aerospace, power-related equipment and health care. GE spun off its health care division in January and plans to complete the separations sometime early next year.