GE 2007 Annual Report Download - page 37

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ge 2007 annual report 35
tives have achieved their results, whether they inspire trust and
confi dence in their people, if they exercise sound judgment, and
whether they have track records of acting with integrity and
treating others with respect. We want to motivate and retain
leaders who bring out the best in everyone around them.
Retaining top talent
Like all leading companies, GE engages in an increasingly fi erce
global competition for top talent. While GE executives are frequently
courted by high-paying investment banks, private equity fi rms,
and other leading corporations and institutions, we are pleased
that we continue to fare well in the battle for executive talent.
GE’s voluntary attrition rate is less than 4% among our most-
senior leaders. Today, all fi ve of our most-highly compensated
offi cers have spent their entire careers at GE and have an average
tenure of more than 28 years with the Company. This continuity
is typical throughout our top 189 offi cers.
Our 189 most-senior executives have an
average tenure of over 20 years with
the Company.
Unlike many public companies, we normally do not offer
employment contracts or unusual severance agreements for
our senior executives. Candidly (except where unique local or
industry practice may require them) we don’t feel we need them.
We retain our best and brightest executives by enabling positive
and fulfi lling experiences throughout their careers at GE, not
through golden handcuffs or parachutes.
Our system of training, rewarding, and retaining top talent
has been developed and refi ned over many years, and it is a key
element to delivering reliable earnings growth that creates long-
term value for our shareowners. But we are always striving to
do better for our shareowners and that will not change.
Sincerely,
Ralph S. Larsen
Chairman, Management Development
and Compensation Committee
February 20, 2008
Strategic & Operational Goals
Execute financial plan • The reported businesses combined
for 16% earnings growth
Create a more valuable
portfolio
• Executed on portfolio plan
approved by the board
Sustain financial strength
and capital allocation
• “Triple-A”-rated; $25.4 billion
returned to investors
in buyback and dividend
Drive organic revenue growth
at 2 to 3 times GDP
• Organic revenue growth of 9%
Manage risk and reputation • GE remains one of the
most admired companies
in polls conducted by
FORTUNE, Barron’s,
CEO, and Fast Company
Retain excellent teams
and a strong culture
• Overall retention greater than
95%; managed high-profile
leadership transitions
Lead the Board activities • GE has an excellent track
record on governance
Sustain high levels of
investor communications
• 350 investor meetings;
#1 in Institutional Investor
Financial Objectives Change From
(Continuing operations) Goal Performance Prior Year
Revenues (In $ billions) ~170 173 14%
Earnings (In $ billions) 22 – 23 22.5 16%
EPS ($ per share) 2.15 – 2.20 2.20 18%
CFOA (In $ billions) 22 – 23 23.3 (2%)
ROTC (%) ~19 18.9 30 bp
Margins (%) ~16.9 16.6 70 bp
2007 CEO GOALS & OBJECTIVES