GE 2007 Annual Report Download - page 38

36 ge 2007 annual report
The primary role of GE’s Board of Directors is to oversee
how management serves the interests of shareowners and
other stakeholders. To do this, GE’s directors have adopted
corporate governance principles to ensure that the Board
is independent and fully informed of the key risks and
strategic issues facing GE.
The GE Board held 13 meetings in 2007, and each outside Board
member visited at least two GE businesses in 2007 without the
involvement of corporate management, in order to develop his
or her own feel for the Company. The Board focuses on the areas
that are important to shareowners — strategy, risk management,
and people — and, in 2007, received briefi ngs on a variety of issues
including: controllership and risk management, compliance and
litigation trends, U.S. and global tax policy, environmental risk
management, social cost trends, acquisitions and dispositions,
intellectual property and copyright protection, global trends, the
reshaping and broadening of GE’s businesses, and cost reduction.
At the end of the year, the Board and each of its committees
conducted a thorough self-evaluation as part of their normal
governance cycles.
The Audit Committee, composed entirely of independent
directors, held 22 meetings in 2007 to oversee our fi nancial
reporting activities, the activities and independence of GE’s external
auditors, and the organization and activities of GE’s internal audit
staff. It also reviewed our progress in meeting the internal control
requirements of Section 404 of the Sarbanes-Oxley Act of 2002,
and compliance with key GE policies and applicable laws.
The Management Development and Compensation
Committee, comprised entirely of independent directors, held
eight meetings to approve executive compensation actions for
our executive offi cers, and to review executive compensation
plans, policies and practices, changes in executive assignments
and responsibilities, and key succession plans. The Nominating
and Corporate Governance Committee, comprised entirely of
independent directors, met three times to consider GE’s
governance charter and practices, and director nominations.
The Public Responsibilities Committee, in three meetings,
reviewed GE’s 2007 Citizenship Report, globalization and free
trade, NBC Universal intellectual property protection, political
contributions, and the GE Foundation budget.
Finally, we want to thank Bill Conaty, Lloyd Trotter, Bob Wright,
and Dave Nissen for their tremendous contributions and services
to the Company. All four of these individuals exemplifi ed what it
means to be a GE leader and built strong organizations that will
proudly carry on their successes. We thank them and wish them
all the best.