Form 4: Edward P. Garden Acquires Phantom Stock Units in General Electric

Director Edward P. Garden acquired 266 phantom stock units in General Electric on March 28, 2024, under the 2022 Long-Term Incentive Plan.

Summary

• On March 28, 2024, Edward P. Garden, a director of General Electric (GE), acquired 266 units of deferred fee phantom stock.
• The acquisition was made under the terms of the 2022 Long-Term Incentive Plan.
• The price per unit was $169.15.
• Each phantom stock unit is economically equivalent to one share of GE's common stock.
• These units are payable beginning one year after termination of service as a director.
• Following the transaction, Garden directly owns 14,073 derivative securities.

Sentiment

Score: 7

Explanation: The sentiment is neutral to positive as it reflects standard executive compensation practices and alignment of interests. There are no indications of negative events or concerns.

Positives

• The acquisition of phantom stock units aligns the director's interests with the long-term performance of the company.
• The 2022 Long-Term Incentive Plan is being utilized, suggesting ongoing commitment to executive compensation strategies.

Future Outlook

The phantom stock units are payable beginning one year after termination of service as a director, indicating a long-term incentive structure.

Industry Context

Form 4 filings are standard practice for reporting changes in beneficial ownership by company insiders, providing transparency to investors.

Comparison to Industry Standards

• Executive compensation packages often include phantom stock or similar equity-based awards to align management's interests with shareholder value.
• Companies like Siemens, ABB, and Mitsubishi Electric also utilize long-term incentive plans with similar structures to retain and motivate key executives.
• The specific terms and conditions of these plans vary, but the underlying principle of linking executive compensation to company performance remains consistent across global benchmarks.

Stakeholder Impact

• The acquisition of phantom stock units can positively impact shareholders by aligning the director's interests with the company's long-term success.

Key Dates