Lower Raises for GE Executives Would Offset GE Health Care Increases

WASHINGTON, March 12 -- Increases in health care costs forced on active and retired workers at General Electric earlier this year could have easily been absorbed by the company if it had shaved a few dollars off the compensation of its top executives, said IUE-CWA President Edward Fire.

The GE proxy statement, released yesterday, documents that GE's top five executives were paid $62.2 million in salaries, bonus and other compensation in 2002 even though the stock sank to below $25 a share and Wall Street was disappointed in a $15.1 billion profit that, though still a record, was below earlier estimates. Last year, the same top five executives received $38.8 million in compensation.

The proxy statement also revealed a $165 million incentive pay program linked to meeting short-term financial targets over the past two years. CEO Jeff Immelt took the biggest share with a $6.7 million payout that helped boost his compensation $8.8 million over 2001's paycheck.

"What incentive program motivated the decision to unilaterally shift health care costs this year?" asked Fire. "GE executives got huge raises that would more than cover any increase in health care costs for themselves and their families. Maybe GE workers should get the same 133 percent compensation increase Mr. Immelt did."

By raising co-pays in its managed care program, GE shifted between $43 million and $57 million in costs to workers and pre-65 retirees. GE has stated it will seek concession in the form of health care cost shifting when national negotiations open this May.

"GE has a lot of nerve to ask workers for givebacks and concessions when its executives continue to feed at the trough of corporate greed," said Fire. "Working families should not be forced to make sacrifices to keep management living in luxury."