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General Electric shareholders reject Larry Culp’s $ 230m payment

Sharers General Electric voted Tuesday for a Culp fee of $ 230m on Tuesday, which led the entertainment industry to raise big bonuses in US companies this year.

According to preliminary results, 57.7% of shareholders refused to pay their trustees.

Advertisers argued that Culp’s plans were rewritten during the epidemic last year in a way that led to him earning bonuses. GE expanded Culp’s contract and reduced the price of shares received bonuses and doubled the number of shares that would receive.

The stock market is back at the end of last year, Culp entered bonus shares valued at $ 47m and payments could jump to $ 230m in 2024 for the very first time if they remain with the company.

Last year, the rewards paid to GE administrators received 73% of the support from their shareholders. After a second vote on Tuesday – which was instructive, unlimited – GE said it was “disappointed” by the results and would continue to engage with its shareholders on pay.

In addition to investing in GE, Culp said Tuesday that the company will not raise its share soon. “We need to continue to build infrastructure to build a stronger GE before expanding the sector,” he said.

Average support for US high-paying stocks has declined this year to the lowest since 2016, according to Equilar, a payroll company. Five S&P 500 companies have now declined to receive large sums of money, including IBM and Starbucks, compared to 10 in 2020 overall, according to ISS Corporate Solutions.

Typically, investors pay for a rubber stamp, and most planners receive more than 90% support.

“I don’t think we’ve ever seen such big and famous companies fail,” said Matteo Tonello, executive director of the Conference Board, a global executive. The refusal to pay fees occurs over a long period of time or in small companies, he said, adding that such large companies fail to get bonus votes “unprecedented”.

More controversial votes are expected this month as participants will stay away from Amazon, ExxonMobil, and others.

Among Russell’s 3000 companies, the number of paid voters is twice as high as in 2020, according to Semler Brossy, a paymaster. In most cases payments are “slightly lower than last year”, the company said in a report on April 29.

Re-recorded payments during the epidemic for easy access to bonuses are one of the reasons why companies are refusing to vote this year, said Courtney Yu in Equilar.

“We see that most companies are getting less than 70% of the vote this year,” he said.

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