GE’s New CFO Has an $8 Million Incentive to Stay
Such delayed payments are becoming common as companies compete for high-profile finance chiefs
The Wall Street Journal article, “GE’s New CFO Has an $8 Million Incentive to Stay," quoted Russell Reynolds Associates Consultant Jenna Fisher on the intense competition for CFOs. The article is excerpted below.
General Electric Co.’s incoming finance chief will earn an annual base pay of $1.5 million but will have to stay with the troubled conglomerate for four years before she can take home an $8 million stock bonus that is part of her compensation package.
The pending payout is aimed at tying the executive to her new employer—an increasingly common practice in an era of stiff competition for high-profile finance chiefs.
Boston-based GE on Monday named Carolina Dybeck Happe as its next chief financial officer,and is expected to start her new role next year.
“The competition for CFOs has never been more fierce,” said Jenna Fisher, a managing director at Russell Reynolds Associates, who heads the recruitment firm’s corporate officers practice. “It is becoming more challenging for companies to hire executives out of their existing contracts.”
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