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Not the 1st time where we have heard of "moving goal posts". BOD will claim that they do so, to prevent employees from been "demotivated or demoralized". Normally this is reserved for those where the BOD is controlled by the majority shareholder. For GE's case, rather than act as a case of check and balance, is the BOD actually too compliant against the executive?
Corporate Excess
In August 2020, the board amended Culp’s contract, bestowing on him a “Leadership Performance Share Award” that lowered the benchmark against which his progress would be measured to the then-much reduced share price of $53. Culp still stood to reap a fortune for scoring corporate touchdowns, but the goalpost had been moved significantly closer, the prior distance now being considered too difficult in light of the “unprecedented challenges” faced by the beleaguered Mr. Culp.
As a first installment, Culp would receive $47 million should the stock recover to $80 (rather than, as before, to $149). The new target was actually below where the stock had stood when Culp was hired. And Culp would need to hit the target for only thirty days. Later in 2020, with most shareholders still wallowing in losses, the $47 million was his.
https://rogerlowenstein.substack.com/p/corporate-excess
Corporate Excess
In August 2020, the board amended Culp’s contract, bestowing on him a “Leadership Performance Share Award” that lowered the benchmark against which his progress would be measured to the then-much reduced share price of $53. Culp still stood to reap a fortune for scoring corporate touchdowns, but the goalpost had been moved significantly closer, the prior distance now being considered too difficult in light of the “unprecedented challenges” faced by the beleaguered Mr. Culp.
As a first installment, Culp would receive $47 million should the stock recover to $80 (rather than, as before, to $149). The new target was actually below where the stock had stood when Culp was hired. And Culp would need to hit the target for only thirty days. Later in 2020, with most shareholders still wallowing in losses, the $47 million was his.
https://rogerlowenstein.substack.com/p/corporate-excess
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.