It also rewards them for executing GE’s strategy through business cycles (for example, maintaining consistent levels of R&D investment through economic cycles).
In evaluating performance consistency, we also weigh the performance of each named executive relative to his peers in his industry segment or function.
Although the executive compensation discussion in this proxy statement focuses on the compensation decisions for our named executives — Jeff Immelt (Chair & CEO), Jeff Bornstein (SVP & CFO), Beth Comstock (Vice Chair & CEO of Business Innovations), David Joyce (Vice Chair & CEO of Aviation), John Rice (Vice Chair & CEO of our Global Growth Organization) and Keith Sherin (Former Vice Chair & CEO of GE Capital) — our executive compensation programs apply broadly across GE’s employee ranks.
For example, approximately 120,000 employees participate in an annual bonus program, more than 5,000 executives receive equity incentives, and approximately 1,000 senior executives participate in our long-term performance award (LTPA) program.
The committee believes that the named executives, as key members of the company’s leadership team, share the responsibility to support GE’s goals and performance.
Immelt a .3 million cash bonus, 80% of target (same as the company’s bonus pool funding). Immelt an equity award with a grant date fair value of .8 million (down 26% from .2 million in 2015), weighted 2/3 PSUs (200k granted) and 1/3 stock options (600k granted). Immelt’s base salary remained flat at .8 million (and has been increased only twice since 2005). Immelt’s compensation is at risk each year, tied to the company’s operating and stock price performance.We set performance metrics for our incentive compensation programs that match our short-term and long-term operating frameworks.We set target performance levels that are challenging but achievable with good performance, and maximum performance levels that represent stretch goals.Our compensation programs are balanced and focused on the long term so that our named executives can achieve the highest compensation through consistent superior performance over sustained periods of time.In addition, large amounts of compensation are usually deferred or realizable only upon retirement, providing strong incentives to manage for the long term while avoiding excessive risk-taking in the short term.