Trade unions were outraged by the payment to CEO General Electric (GE) Larry Culp a bonus of $ 47 million, writes Financial Times .
The top manager should have been rewarded if the company’s shares were worth $ 31 per share. However, in the midst of the pandemic, conditions were changed. The price of $ 10 was set as the level that would allow receiving the bonus. “How can GE explain the multi-million dollar payout to a CEO at a time when workers and their families are suffering?” – heads of trade unions are outraged.
The company has cut 20 percent of jobs in its GE Aviation division this year. The scandal could cause a negative reaction from shareholders, experts say.
Last year General Electric took a decision to freeze the pension plan for about 20 thousand employees. This was dictated by the need to reduce debt. In addition, additional pension payments for 700 employees were frozen.