GE Governance: Board of Directors, Security, Risk Management

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 aimed at ensuring that the Board is independent and fully informed on the key risks and strategic issues facing GE. GE has met its goal to have two-thirds of its Board be independent under a strict definition of independence. Today, 14 of GE’s 16 Directors are independent.

The GE Board held 15 meetings in 2009, and each outside Board member visited at least two GE businesses 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, leadership development, and regulatory matters — and in 2009, received briefings on a variety of issues including U.S. and global tax and public policies, environmental risk management and reserves, pension and healthcare costs, financial strength and funding, CSA portfolio management and commitment, reserves/losses in the credit cycle, controllership, litigation and emerging SEC rules, regulatory capability and compliance, and managing reputation. At the end of the year, the Board and each of its committees conducted a thorough self-evaluation.