GE has always taken the long-term view. The Company has successfully weathered many economic cycles over its 130-year history by hiring, training and developing disciplined leaders who focus on achieving our long-term strategies, thoughtfully managing risks, and creating and preserving shareowner value. It is this discipline and focus that drives the enduring success of the Company.

Many of our top executives have spent most or all of their careers here. They have unparalleled domain expertise and are deeply invested in and committed to the Company. Our compensation programs don’t reward them for taking outsized risks that produce short-term gains. We reward our executives for consistently making smart decisions over the course of their careers here that carefully balance risk and return, advance the Company’s strategic objectives and deliver long-term results for shareowners.

While we focus on long-term performance, we do not ignore current performance. We evaluate annual performance in the context of progress made against our long-term strategies, results relative to annual objectives and actions to manage risk and preserve shareowner value. Our compensation programs provide for variable rewards depending on performance. Importantly, because we take the long view, good years do not result in extravagant payouts and in bad years compensation is appropriately adjusted weighing the year’s performance and long-term performance. We believe this balanced approach is critical to attracting and retaining the best people for the Company’s long-term success.

That said, GE did not perform as well in 2009 as it has historically, and that is reflected in this year’s payouts.