Say on Pay votes do matter
General Electric’s CEO is receiving a pay cut following shareholder disapproval.
Our users often doubt whether their votes against a CEO’s pay check will actually make a difference. Can a single vote sway a multi-billion dollar giant? 🤔
Well, here’s proof that their votes — your votes — can make a difference. General Electric is cutting CEO Larry Culp’s bonus for fiscal year 2022 due to the shareholder pushback it received last year.
The details
General Electric’s Board has reduced Mr. Culp’s annual bonus from $15 million to $5 million — a 67% reduction. They say that this move addresses shareholder concerns while still recognising Mr. Culp’s contributions.
In the bigger picture, Mr. Culp’s fiscal year 2021 annual bonus makes up 18.5% of his total $22.6 million pay. For his full pay breakdown, see here.
The background
In March 2021, General Electric proposed to extend Mr. Culp’s contract until 2024, and incentivise him with a Leadership Performance Award. The award seeks to incentivise Mr. Culp to stay by giving him shares, and could be worth up to $230 million. 💰️
However, 58% of shareholders voted against this proposed pay plan. Even though the vote was only advisory, shareholders rarely vote down Say on Pay votes.
So if you’re ever doubtful on whether your vote matters, stop being silly — it does.
Reclaim your shareholder rights.
If you already have Tumelo, go to your platform and get voting. If not, ask your HR team or pensions/ investment provider for access. Your money is invested in big companies, you have a voice!
