General Electric Co.'s leadership reshuffle left the company's new chief with target annual pay of $5 million and a runner-up for the job with a shot at more than $7 million in GE shares if he sticks around for five years.
John Flannery, who on Monday was named GE's chief executive effective Aug. 1, will receive salary of $2 million and a target bonus of $3 million a year, according to a securities filing. Any long-term incentive paid to Mr. Flannery for company performance through 2018 will be made in stock.
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GE didn't disclose any sign-on bonuses or one-time equity awards for its next CEO, and said the board will decide Mr. Flannery's annual 2017 equity awards along with those of other executives.
Jeff Immelt, who will step down as CEO after 16 years but remain GE's chairman through year's end, made $21.3 million total last year, including $3.8 million in salary and a bonus of $4.7 million.
Jeff Bornstein, the company's finance chief and among those under consideration to succeed Mr. Immelt, was given the title of vice chairman and granted 250,000 restricted stock units, valued at about $7.2 million at Monday's closing share price, the securities filing said. Half of those shares vest, or become fully his, in 2020, and the remainder in 2022, if he remains employed at the company.
GE didn't disclose any additional payments to Mr. Immelt, but the company's most recent proxy filing indicates that, as of the end of 2016, he stood to receive more than $127 million in retirement and other benefits following his departure from the company.
That estimate includes pension benefits valued at $82 million -- including pension payments of $5 million a year for the rest of his life -- and the vesting of $36 million in restricted equity, as well as $9.9 million in deferred compensation benefits, according to GE's most recent proxy statement.
In addition, securities filings indicate that Mr. Immelt owned more than $70 million GE shares as of mid-May, as well as a life insurance policy that GE has funded, with a death benefit of $24 million as of the end of 2016.
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(END) Dow Jones Newswires
June 12, 2017 18:30 ET (22:30 GMT)