Form 4: General Electric Director Thomas W. Horton Reports Acquisition of Phantom Stock Units

Director Thomas W. Horton reports acquiring 297 units of deferred fee phantom stock in General Electric, equivalent to 297 shares of common stock, under the company's 2022 Long-Term Incentive Plan.

Summary

• On March 28, 2024, Thomas W. Horton, a director of General Electric (GE), acquired 297 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.
• Following the transaction, Horton directly owns 15,371 derivative securities.
• The phantom stock units are payable beginning one year after termination of service as a director.

Sentiment

Score: 7

Explanation: The sentiment is neutral to slightly positive. It reflects a standard transaction related to executive compensation, indicating alignment of interests between the director and the company's performance.

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 designed to reward key individuals.

Future Outlook

The phantom stock units are payable beginning one year after termination of service as a director, indicating a deferred compensation arrangement.

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

• Equity compensation in the form of phantom stock is a common practice among large publicly traded companies like General Electric to align the interests of directors and executives with shareholder value.
• Companies such as Siemens, ABB, and Mitsubishi Heavy Industries, which are comparable to General Electric in terms of size and industry, also utilize similar long-term incentive plans that include stock options, restricted stock units, and performance-based equity awards.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence by demonstrating a commitment to the company's long-term success.

Key Dates