Governance : Our Company : GE
Sound principles of corporate governance are critical to obtaining and retaining the trust of investors — and to GE’s overarching goal of performance with integrity.
The Audit Committee composed entirely of independent directors, held 10 meetings in 2011 to oversee the integrity of the company’s financial statements, the company’s compliance with legal and regulatory requirements, the independence and qualifications of the independent auditor and the performance of the company’s internal audit function and independent auditor.
Chaired by Douglas Warner, the Audit Committee assists the board of directors in its oversight of the integrity of the financial statements of the Company, as well as compliance with legal and regulatory requirements, the independence and qualifications of the independent auditor, and the performance of the Company’s internal audit function and independent auditor.
The Management Development and Compensation Committee is also composed entirely of independent directors and held eight meetings in 2011. The objective of the meetings were to establish, review and approve CEO compensation and to review and approve other senior executive compensation; to monitor our management resources, structure and succession planning, development and selection process as well as the performance of key executives; to review incentive compensation arrangements to assure that incentive pay does not encourage unnecessary risk taking; and to review and discuss, at least annually, the relationship between risk management policies and practices, corporate strategy and senior executive compensation. It also oversees the GE 2007 Long-Term Incentive Plan and the Incentive Compensation Plan and any other compensation and equity-based plans.
Chaired by Ralph Larsen, the Management Development and Compensation Committee approves all of the policies under which compensation is paid or awarded to the Company’s CEO and other senior executive officers; monitors our management resources, structure, succession planning, development and selection process as well as performance of key executives; reviews incentive compensation arrangements to assure that incentive pay does not encourage unnecessary risk taking; and reviews and discusses the relationship between risk management policies and practices, corporate strategy and senior executive compensation.
The Nominating and Corporate Governance Committee, composed entirely of independent directors, met four times in 2011 to consider the selection of director nominees for the Board and the development and review of our Governance Principles. The committee also reviews director compensation and benefits; oversees the annual self-evaluations of the Board and its committees; makes recommendations to the Board concerning the structure and membership of the Board committees; reviews, approves and ratifies transactions with related persons required to be disclosed under the SEC rules; resolves any conflict of interest involving director or executive officers; and oversees risks related to corporate governance.
Chaired by Rochelle Lazarus, the Nominating and Corporate Governance Committee assists the board in the review and development of the Company’s Governance Principles and the selection of director nominees for the Board. The committee is also responsible for reviewing director compensation and benefits; overseeing the annual self-evaluations of the Board and its committees, as well as director performance and board dynamics; making recommendations to the Board concerning the structure and membership of the Board committees; and reviewing, approving and ratifying transactions with related persons required to be disclosed under the SEC rules.
The Public Responsibilities Committee reviews and oversees GE's positions on corporate social responsibilities and public issues of significance that affect investors and other key GE stakeholders, including charitable donations, political contributions, lobbying activities and related issues. The committee also identifies and discusses with management risks related to our public policy initiatives, the environment and similar matters. In addition, the Public Responsibilities Committee reviews the status of any significant governmental inquiry or investigation that is not related to our financial statements. This committee met four times in 2011.
Chaired by Sam Nunn, the Public Responsibilities Committee reviews and oversees the Company’s position on corporate social responsibilities and issues of public significance that affect investors and other GE key stakeholders, including charitable donations, political contributions, lobbying activities and related issues. In addition, the committee identifies and discusses with management risks related to our public policy initiatives, the environment and similar matters.
The committee assists the Board in its oversight of the company's management of key risks, including strategic, operational and reputational risks, as well as the guidelines, policies and processes for monitoring and mitigating such risks. This committee met eight times in 2011, including joint sessions with the Audit Committee and GE Capital Board of Directors.
Chaired by W. Geoffrey Beattie, the Risk Committee's role includes oversight of risk management of GE Capital. The committee's duties include: (1) reviewing and discussing with management GE and GE Capital's risk appetite and strategy relating to key risks, including credit risk, liquidity and funding risk, market risk and product risk, (2) meeting separately at least two times a year with GE and GE Capital's chief risk officers, (3) receiving reports from GE and GE Capital's internal audit function on the results of risk management reviews and assessments, (4) reviewing the status of financial services regulatory exams relating to GE and GE Capital, and (5) reviewing the disclosure regarding risk contained in the GE and GE Capital annual and quarterly reports.
| Audit Committee | Nominating and Corporate Governance Committee | Management Development and Compensation Committee | Public Responsibilities Committee | Risk Committee | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Outside DirectorsIndependent | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| W. Geoffrey Beattie | X | Chair | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| John J. Brennan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| James I. Cash, Jr. | X | X | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Marijn E. Dekkers | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ann M. Fudge | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Susan Hockfield | X | X | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Andrea Jung | X | X | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| A.G. Lafley | X | X | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Robert W. Lane | X | X | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ralph S. Larsen | X | Chair | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Rochelle B. Lazarus | Chair | X | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| James J. Mulva | X | X | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Sam Nunn | X | Chair | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Robert J. Swieringa | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| James S. Tisch | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Douglas A. Warner III | Chair | X | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Material Relationships with GE | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Roger S. Penske | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inside DirectorManagement Director | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Jeffrey R. Immelt | X | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||