GE Stock Price Forecast: General Electric Company falls as CEO faces backlash over bonus
Premium|Take advantage of 50% OFF on your first month.
Start your subscription and get access to all our original articles.
You have reached your limit of 5 free articles for this month.
Get Premium without limits for only $9.99 for the first month
Access all our articles, insights, and analysts.
UNLOCK OFFER- NYSE:GE dipped by 1.18% on Friday, lagging the broader markets which finished positive for the week.
- General Electric CEO Larry Culp is in some hot water with shareholders over a big payday.
- Culp does now have incentive to raise the price of GE’s stock, as it remains a reopening play to investors.
NYSE:GE has experienced more volatility than a century-old company with a $117 billion market cap is used to having and shareholders may be getting impatient. Friday saw General Electric fall by 1.18% to close the final trading session of the week at $13.39. This concluded another choppy week for the industrial conglomerate, although the stock remains above its 50-day and 200-day moving averages, which shows that General Electric is exhibiting higher highs and higher lows.
Stay up to speed with hot stocks' news!
A recent announcement by General Electric about the restructuring of CEO Larry Culp’s pay has shareholders and shareholder advisors up in arms. Nobody is denying that Culp has done an excellent job of remodelling the century old company into a wonderful turnaround story, after the stock remained stagnant for years. But when Culp took over, there was a clause in his contract for a $232 million bonus if the stock price were to climb above $31 per share. Now, citing issues related to the COVID-19 pandemic, General Electric has lowered that share price to $16.68 for a total of 30 consecutive days.
GE Price prediction
Naturally, shareholders are upset as a lower price target for Culp’s bonus theoretically means he needs to achieve less for the company in order to meet the lower threshold. While General Electric remains a popular play on the reopening of the economy, especially considering its aviation and healthcare businesses, investors may have some pause now about how dedicated Culp is to the long-term health of the stock.
- NYSE:GE dipped by 1.18% on Friday, lagging the broader markets which finished positive for the week.
- General Electric CEO Larry Culp is in some hot water with shareholders over a big payday.
- Culp does now have incentive to raise the price of GE’s stock, as it remains a reopening play to investors.
NYSE:GE has experienced more volatility than a century-old company with a $117 billion market cap is used to having and shareholders may be getting impatient. Friday saw General Electric fall by 1.18% to close the final trading session of the week at $13.39. This concluded another choppy week for the industrial conglomerate, although the stock remains above its 50-day and 200-day moving averages, which shows that General Electric is exhibiting higher highs and higher lows.
Stay up to speed with hot stocks' news!
A recent announcement by General Electric about the restructuring of CEO Larry Culp’s pay has shareholders and shareholder advisors up in arms. Nobody is denying that Culp has done an excellent job of remodelling the century old company into a wonderful turnaround story, after the stock remained stagnant for years. But when Culp took over, there was a clause in his contract for a $232 million bonus if the stock price were to climb above $31 per share. Now, citing issues related to the COVID-19 pandemic, General Electric has lowered that share price to $16.68 for a total of 30 consecutive days.
GE Price prediction
Naturally, shareholders are upset as a lower price target for Culp’s bonus theoretically means he needs to achieve less for the company in order to meet the lower threshold. While General Electric remains a popular play on the reopening of the economy, especially considering its aviation and healthcare businesses, investors may have some pause now about how dedicated Culp is to the long-term health of the stock.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.