NY Times, Sept. 6, 2002
G.E. Expenses for Ex-Chief Cited in Divorce Papers
By Geraldine Fabrikant
Papers filed yesterday in the divorce of John F. Welch Jr., the former chief executive of General Electric, by his wife contend that G.E. covered enormous living costs for them while he led the company and will continue to do so for him for the rest of his life. The extent of these benefits has never been disclosed by the company.
General Electric has reported that Mr. Welch's total compensation, including bonus and salary, was $16.7 million in 2000, his last full year at the company before his retirement last September. It has also said that he will remain a consultant to the company on a retainer of $86,000 a year and will continue to have access to G.E. services and facilities.
But it did not disclose the value and the details of his perquisites as chief executive that apparently continue through retirement. Along with access to corporate aircraft, mentioned previously in company footnotes, his wife's documents describe his use of a large Manhattan apartment owned by G.E., floor-level seats to the New York Knicks, courtside seats at the U.S. Open, satellite TV at his four homes and all the costs associated with the New York apartment, from wine and food to laundry, toiletries and newspapers. The privileges, down to certain dining bills at the restaurant Jean George in the Manhattan apartment building where he lives, have continued even in retirement, the court papers indicate, without placing a value on them.
Acclaimed for his ability to deliver higher profits year after year at G.E., Mr. Welch was one of the nation's most admired chief executives, and his employment contract struck in 1996 reflected his company's impressive performance.
But people who specialize in corporate governance and compensation said yesterday that they were stunned by the long list of benefits ...
[http://www.nytimes.com/2002/09/06/business/06CHIE.html]
Business Week, Feb. 1, 2001
At GE, Neutron Jack Is Back
To keep its profit growth engine humming, CEO Jack Welch plans to cut at least 75,000 jobs, hoping Web efficiencies will fill the gap As GE's John F. Welch Jr. heads for retirement, his legacy as Neutron Jack continues. Back in 1981, a 45-year-old Welch settled into his new job as chief executive of General Electric Co. by promptly dismantling many of GE's old-line businesses and hacking away layers of bureaucracy in the big conglomerate. After four years, he had managed to cut some 100,000 jobs, a feat that set GE on its now-legendary course of growth and ever-increasing profits -- and one that earned Welch his infamous nickname of Neutron Jack. Now, at 65 as he's supposed to be winding down his career, it looks as if Neutron Jack is roaring back.
Wall Street sources and people close to the company tell BusinessWeek that GE is planning massive job cuts on a scale not seen since the early days of Welch's tenure. GE may take out at least 75,000 jobs in the next two years -- or more than 15% of the 450,000 people it'll employ once the Honeywell International merger is completed. Excluded from the estimates are the 28,000 jobs that will go as a result of GE's decision to shut retailer Montgomery Ward & Co.
[http://www.businessweek.com/bwdaily/dnflash/feb2001/nf2001021_692.htm]
Carl
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