Two years after taking the helm at a slumping General Electric, Larry Culp has secured a huge reward: a bonus of around $47 million and the potential for much more.
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The mammoth payoff follows thousands of layoffs at the industrial conglomerate amid the coronavirus pandemic.
Culp took over as chief executive in October 2018 and was paid almost $25 million in 2019, but he could reap as much as $230 million if GE meets additional targets, according to securities filings reviewed by AFP.
The ex-CEO of Danaher, Culp has been credited with stabilizing GE's finances through a series of austerity measures, including asset sales and layoffs.
The company justified the bonus citing the executive's performance amid a difficult operating environment.
The board launched a charm offensive over the summer to retain Culp as it faced a bruising downturn in aviation that hit orders for its LEAP engine joint-venture with France's Safran.
The company in August amended its long-term incentive plan, effectively lowering the bar Culp would have to clear to win the payoff and extended his contract until 2024 with an option for an additional year.
The head of the GE labor union called the package 'absolutely outrageous,' especially after the company announced some jobs would be shipped overseas.
'How can GE justify this type of enormous bonus for its CEO, while workers, their families, and communities are suffering due to layoffs and offshoring?' Carl Kennebrew, president of the Industrial Division of the Communications Workers of America (IUE-CWA) said in a statement.
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Under the revised package, Culp would receive the bonus if GE's share price reaches $10 and trade above that level for 30 days -- lowering the target price from $19 previously.
When the package was agreed, GE shares were trading at around $6.65 but have advanced more recently amid optimism surrounding Covid-19 vaccines.
GE's stock price has been above $10 for more than a month and Wednesday afternoon was trading at $10.73, up 1.6 percent.
Culp's payoff could reach $230 million if GE shares reach $17 -- well below the original benchmark of $31 a share.
People familiar with the situation said GE recognized that the potential sums are staggering, but noted that Culp must stay with the company through August 2024 to receive the full payout under the amended plan.
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'Under Larry's leadership, GE has made significant progress against the goals he set on day one as CEO: improving the company's financial position and strengthening its businesses,' said a GE spokesperson on behalf of the board, noting the difficult operating environment this year.
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'We believe having Larry at the helm of the company for a longer period of time is unquestionably to the benefit of all shareholders and stakeholders.'
Culp has presided over significant rounds of layoffs, including 13,000 aviation jobs globally earlier this year.
Even with the asset sales, GE still has heavy debt and operations are challenged by turbine overcapacity in its power division and still-weak demand in aviation.
GE reported a 2019 loss of $5.4 billion, compared with $22.8 billion in 2018. The company reported a $1.2 billion loss in the most recent quarter.
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INTRODUCTION
TED BIG MONEY SCRATCHCARD is a multi-game scratchcard with an additional Wheel of Fartune feature triggered by collecting a minimum of 3 'Thunder Buddies Bonus' symbols, the wheel can grant access to 3 more exciting features including 'Bar Crawl Bonus', 'Ted's Pyramid Bonus' and 'BIG MONEY'!
Step 1: Getting Started
- Press the STAKE button to increase or decrease the amount of your TOTAL BET. Select from the list of available stakes from the options available (depending on Operator configuration and currency equivalent).
- Press the QUANTITY button to cycle through available options. Choose between 1, 5 or 10.
- The higher your QUANTITY the greater your odds of triggering the Wheel of Fartune feature.
Step 2: How To Play
- Press 'BUY CARD/CARDS' to start the game.
- Scratch off game 1 and if you match two of the same amount, you win that prize
- In game 2, scratch off the panel and if you reveal a TED head, you win.
- Scratch off game 3 and if your number beats TED's, you win.
- 'Thunder Buddies Bonus' symbols can appear randomly on any card
Wheel of Fartune
- Collecting 3 'Thunder Buddies Bonus' symbols over the duration of your chosen Quantity will activate the 'Wheel of Fartune'.
- Any additional 'Thunder Buddies Bonus' symbols revealed after the wheel is active will upgrade sections of the wheel into ARROWS.
- Once the player has revealed their final card the wheel will be presented to the player and begin to spin. Landing on an ARROW will progress the player to the next wheel tier, the result shown will be awarded to the player.
- The player is guaranteed to be awarded either a Cash Multiplier or one of 3 Bonus Features.
Ted Modifier
- Ted can awaken at the end of any card, and award the player up to 2 modifiers. Lose to Win: Ted can upgrade a losing game to a win. Bonus Boost: Ted can award a number of additional 'Thunder Buddies Bonus' symbols to the current card helping you progress on the Wheel of Fartune.
Bar Crawl Bonus
- After a short screen transition the player will be presented with a secondary bonus screen that is themed around a city street.
- The bonus shall be split into two stages; Stage 1 is a board feature where you can level up to the Big Money Bonus (stage 2).
- The player always begins in stage 1 and is required to select bottles in order to move around the board, increasing the total bet multiplier. Landing on one of the special board positions awards one of the following positive or negative outcomes:-
Event | Action |
Girls | Upgrades one or more multiplier values on the board. |
Pizza House | Awards a trail run, where you can collect multipliers and Big Money counters. |
Ming's Takeaway | Awards a Mystery Cash Bonus Prize |
Big Money | Awards a Big Money counter. Collect 5 to enter the Big Money Bonus. |
Arrested | Landing on this takes Ted to the ID parade. Make sure you're not Banged Up! |
Ted's Pyramid Bonus
- During Ted's Pyramid Bonus the player will be presented with a bonus grid, 5 rows divided in sections that become more valuable towards the top.
- Each section contains either a Cash Multiplier or an Advance Arrow the player will always begin on the lowest row.
- To begin a marker will sweep left-to-right until it stops and awards the corresponding prize. After each sweep the last position shall be converted into an Advance Arrow, increasing the chance of progressing further up the grid.
- Following each turn the player will be prompted to 'Pick a Ted' from 3 Ted portraits which can contain either CONTINUE or COLLECT, revealing CONTINUE will action the marker to sweep again.
- The feature ends when COLLECT is revealed or if the player climbs to the top of the bonus grid which awards Ted Big Money Bonus.
Big Money
- If the Big Money Bonus end game is reached, the player is presented with Ted in the centre of the screen surrounded by a carousel of multiplier values along with Sale signs down the left and right sides of the screen.
- The values will spin and then come to a stop awarding the corresponding total bet multiplier. The player will then be prompted to pick a sale sign from either side of the carousel, revealing either RESPIN (which respins the values and adds to the bonus win) or COLLECT which ends the feature, awarding the player the overall Total Bet Multiplier achieved.
The maximum win from a single game is £250,000 or 10,000xBet - whichever is reached first (depending on currency. Other Operator limits may apply).
MALFUNCTION VOIDS ALL PLAYS AND PAYS.
The theoretical return to player (RTP) is 80%.
Dernière actualisation: 02/05/2019