GE 2008 Annual ReportGovernance
2008 CEO Goals and Objectives
Strategic & Operational Goals
- Sustain operating excellence and financial discipline
- Achieved record revenues in 2008 and third largest earnings total in GE’s history
- Managed the Company through the current economic turmoil in a safe and responsible way
- Significantly strengthened the Company’s liquidity position
- Reduced GE Capital’s leverage and its reliance on commercial paper debt and diversified its funding sources
- Create a more valuable portfolio of businesses
- Reorganized GE Capital intending to maintain its competitiveness as a smaller, more focused finance company
- Drive organic revenue growth at 2 to 3 times gross domestic product
- Generated 8% industrial organic revenues growth
- Retain an excellent team with a strong culture
- Managed key leadership transitions at Healthcare, Aviation, and GE Money
- Manage the Company’s risk and reputation
- Led successful sponsorship and broadcast of the Beijing 2008 Olympic Games
- Build an excellent investor base
- Attracted key value investors in 2008 equity offering
- Lead the Board activities
- Continued to strengthen Board membership
Financial Objectives
| Goal | Performance | Change From Prior Year |
|
| Revenues (In $ billions) | 190 – 195 | 183 | 6% |
|---|---|---|---|
| Earnings (In $ billions) | 24.2+ | 18.1 | (19)% |
| EPS ($ per share) | 2.42+ | 1.78 | (19)% |
| CFOA ($ in billions) | 23 – 26 | 19.1 | (18)% |
| ROTC (%) | ~20 | 14.8 | (410)bp |
| Margins (%) | ~17 | 15.6 | (100)bp |
Leadership in the Challenging Times that Lie Ahead
In the midst of this recession, we look to our extremely capable and well-trained managers to keep GE safe and focused on long-term shareowner value creation. The Board holds our leaders to an extremely high standard — we expect them to manage their businesses with a sense of ownership that is informed both by their deep operational expertise and a broad understanding of how industry dynamics and global economic conditions will affect their businesses now and into the future.
These may be unprecedented times, but we are confident that GE has a capable, well-trained group of leaders that will secure the long-term health, growth, and profitability of the company. In the challenging times ahead, growing and retaining strong leaders and rewarding them appropriately for disciplined and thoughtful management will remain strategic imperatives for GE.
Sincerely,
Ralph S. Larsen
Chairman, Management Development and Compensation Committee
February 6, 2009