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| 1 | Messrs. Sherin and Rice deferred a portion of their salaries under the 2006 employee deferred salary plan, which is included in the Nonqualified Deferred Compensation Table on page 30. Each of the named executives also contributed a portion of his salary to the company’s 401(k) savings plan. |
| 2 | This column represents the dollar amount recognized for financial statement reporting purposes with respect to the 2006 fiscal year for the fair value of PSUs and RSUs granted in 2006 as well as prior fiscal years, in accordance with SFAS 123R. Pursuant to SEC rules, the amounts shown exclude the impact of estimated forfeitures related to service-based vesting conditions. As Mr. Wright is eligible for retirement, the fair value of his awards that have been held for more than a year have already been fully expensed. For RSUs, fair value is calculated using the closing price of GE stock on the date of grant. For additional information, refer to note 24 of the GE financial statements in the Form 10-K for the year ended December 31, 2006, as filed with the SEC. Refer to note 3 below for a discussion of the calculation of fair value for PSUs. See the Grants of Plan-Based Awards Table for information on awards made in 2006. These amounts reflect the company’s accounting expense for these awards, and do not correspond to the actual value that will be recognized by the named executives. |
| 3 | This amount includes PSUs granted to Mr. Immelt in 2006 as well as prior fiscal years. The PSUs are subject to market and performance conditions, as described in the CD&A on page 16. In measuring fair value, SFAS 123R distinguishes between vesting conditions related to the company’s stock price (market conditions) and other non-stock price related conditions (performance conditions). Market conditions, such as those in the PSUs that are tied to GE’s total shareholder return, reduce the grant-date fair value under SFAS 123R; performance conditions, such as those in the PSUs that are tied to GE’s operating performance, do not reduce the grant-date fair value under SFAS 123R but is evaluated at the end of each reporting period and may be adjusted for changes in operating performance. This amount reflects the company’s accounting expense for the PSUs, and does not correspond to the actual value that will be recognized by Mr. Immelt, which depends solely on the achievement of specified performance objectives over the performance period. Half of the PSUs for each grant are tied to average growth in cash flow from operating activities and the other half tied to total shareowner return on GE stock compared to the S&P 500. Based on the market value of GE’s stock on the date of grant of the PSUs, the PSUs granted in September 2006 had a grant date value of either zero, $4,251,250 or $8,502,500 depending on whether neither, one or both performance conditions are ultimately met. |
| 4 | This column represents the dollar amount recognized for financial statement reporting purposes with respect to the 2006 fiscal year for the fair value of stock options granted to each of the named executives, in 2006 as well as prior fiscal years, in accordance with SFAS 123R. Pursuant to SEC rules, the amounts shown exclude the impact of estimated forfeitures related to service-based vesting conditions. As Mr. Wright is eligible for retirement, the fair value of his awards that have been held for more than a year have already been fully expensed. For additional information on the valuation assumptions with respect to the 2006 grants, refer to note 24 of the GE financial statements in the Form 10-K for the year ended December 31, 2006, as filed with the SEC. For information on the valuation assumptions with respect to grants made prior to 2006, refer to the note on Other Stock-Related information for the GE financial statements in the Form 10-K for the respective year-end. See the Grants of Plan-Based Awards Table for information on options granted in 2006. These amounts reflect the company’s accounting expense for these awards, and do not correspond to the actual value that will be recognized by the named executives. |
| 5 | This column represents the sum of the change in pension value and non-qualified deferred compensation earnings in 2006 for each of the named executives. The change in pension value was $966,974, $1,518,781, $2,974,112, $2,110,102 and $1,902,423 for each of Messrs. Immelt, Sherin, Neal, Rice and Wright, respectively. See the Pension Benefits Table on page 28 for additional information, including the present value assumptions used in this calculation. The above-market earnings on the employee salary deferral plans in which the named executives participate were $69,934, $45,617, $58,815, $73,575 and $520,291 for each of Messrs. Immelt, Sherin, Neal, Rice and Wright, respectively. As described in the CD&A on page 17, an executive will not be offered the opportunity to participate in any salary deferral plans if he is a named executive at the time such plan is initiated. Above-market earnings represent the difference between market interest rates determined pursuant to SEC rules and the 8.5% to 14% interest contingently credited by the company on salary deferred by the named executives under various salary deferral plans in effect between 1987 and 2006. See the Nonqualified Deferred Compensation Table on page 30 for additional information. |
| 6 | See the All Other Compensation Table below for additional information. |
All Other Compensation Table
The following table describes each component of the All Other Compensation column in the Summary Compensation Table.
| Name of Executive | Other Benefits1 | Tax Payments2 |
Value of Supplemental Life Insurance Premiums3 |
Payments Relating to Employee Savings Plan4 | Total | ||||||||||||||||||||
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| Immelt |
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| Sherin | 155,477 | 9,577 | 62,518 | 80,650 | 308,222 | ||||||||||||||||||||
| Neal | 91,423 | 0 | 105,449 | 98,000 | 294,872 | ||||||||||||||||||||
| Rice | 161,450 | 7,525 | 79,791 | 87,100 | 335,866 | ||||||||||||||||||||
| Wright | 294,356 | 12,968 | 506,256 | 197,200 | 1,010,780 | ||||||||||||||||||||
| 1 | See the Other Benefits Table below for additional information. |
| 2 | This column reports amounts reimbursed for the payment of taxes with respect to financial counseling, tax preparation services and the personal use of NBCU car service. See the Other Benefits Table below for the incremental costs associated with providing these services. |
| 3 | This column reports taxable payments made to the named executives to cover premiums for universal life insurance policies owned by the executives. These policies include: (a) Executive Life, which provides universal life insurance policies for the named executives totaling $3 million in coverage at the time of enrollment, increased 4% annually thereafter; and (b) Leadership Life, which provides universal life insurance policies for over 4,400 of the company’s executive-band employees and above with coverage of two times their salary plus 100% of their bonus payments. The amount for Mr. Wright also includes Supplemental Life, the predecessor plan to Executive Life. |
| 4 | This column reports (a) company matching contributions to the named executive’s 401(k) savings account of 3.5% of pay up to the limitations imposed under IRS rules; (b) related matching deferred bonus credits of 3.5% of certain pay in excess of amounts eligible for matching under the 401(k) savings plan; and (c) a 3.5% one-time credit on the amount of salary deferred for those named executives who participated in the 2006 employee deferral salary plan. See page 30 for a further description of the company contributions related to nonqualified deferred compensation. |
Other Benefits
The following table describes other benefits and the cost to the company of providing them. The total amount of these other benefits is included in the All Other Compensation Table above for each named executive.
| Name of Executive | Use of Aircraft1 | Charitable Contributions2 | Other3 | Total | ||||||||||||||||
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| Immelt |
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| Sherin | 60,059 | 50,000 | 45,418 | 155,477 | ||||||||||||||||
| Neal | 13,555 | 50,000 | 27,868 | 91,423 | ||||||||||||||||
| Rice | 60,184 | 50,000 | 51,266 | 161,450 | ||||||||||||||||
| Wright | 193,479 | 50,000 | 50,877 | 294,356 | ||||||||||||||||
| 1 | The calculation of incremental cost for personal use of company aircraft includes only the variable costs incurred as a result of personal flight activity: a portion of ongoing maintenance and repairs, aircraft fuel, satellite communications and any travel expenses for the flight crew. It excludes non-variable costs, such as exterior paint, interior refurbishment and regularly scheduled inspections, which would have been incurred regardless of whether there was any personal use of aircraft. Messrs. Immelt and Wright are designated as “security personnel” pursuant to an executive security program established by the MDCC for the protection of the company’s senior executive officers, and therefore are required to use company aircraft for all air travel, whether personal or business. |
| 2 | The GE Foundation matches up to $50,000 in contributions a year for all employees, and $100,000 a year in contributions by named executives, to approved charitable organizations. The amount shown represents the additional match on charitable contributions made by the executive above the limit available to all employees. |
| 3 | This column reports the total amount of other benefits provided, none of which individually exceeded the greater of $25,000 or 10% of the total amount of these benefits for the named executive. These other benefits include: (a) financial counseling and tax preparation services, (b) a leased car, (c) car service fees, (d) alarm and generator installation, maintenance and monitoring, (e) participation in the Executive Products and Lighting Program and (f) an annual executive physical examination. |
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