GE Stock Price Forecast: General Electric Company falls as CEO faces backlash over bonus

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.

Stocks Reporter FXStreet

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.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

EUR/USD flirts with yearly lows in the sub-1.1600 area

EUR/USD adds to Monday’s heavy losses and breaks below the key 1.1600 support on Tuesday, putting the YTD lows around 1.1570 to the test. The pair’s deep pullback comes as the US Dollar extend its strong bounce, always propped up by the intense flight-to-safety environment.

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold remains offered around $5,170

Gold comes under renewed and marked selling pressure on Tuesday, hovering around the $5,170 mark per troy ounce and reversing four consecutive daily advances. The yellow metal’s bearish tone comes on the back of the increasing demand for the Greenback at the time when investors continue to trim bets on further Fed rate cuts.

Crypto Today: Bitcoin, Ethereum, XRP pull back as sentiment remains in extreme market fear

The cryptocurrency market is broadly in the red on Tuesday as the Middle East grapples with an escalating war. Bitcoin (BTC) is in a pullback, trading below $67,000 at the time of writing, and most altcoins follow suit.

Middle East conflict ramps up a gear as energy price spike rips through markets

It’s another risk off day as geopolitical headwinds continue to batter financial markets. Although markets calmed during the US session and US stocks managed to post gains on Monday, this has not fed through to the European session, and stocks and bonds are sharply lower for a second day.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.