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Governance

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

(Continuing operations)
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,

R.S. Larsen signature

Ralph S. Larsen
Chairman, Management Development and Compensation Committee
February 6, 2009

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