Form 4: Paula Rosput Reynolds Reports Acquisition of GE Phantom Stock Units

Director Paula Rosput Reynolds reports acquiring 284 units of General Electric deferred fee phantom stock at $169.15 per unit on March 28, 2024.

Summary

• On March 28, 2024, Paula Rosput Reynolds, a director of General Electric (GE), acquired 284 units of deferred fee phantom stock.
• The acquisition was made at a price of $169.15 per unit, according to the terms of the 2022 Long-Term Incentive Plan.
• Each phantom stock unit is economically equivalent to one share of GE common stock.
• Following the transaction, Reynolds directly owns 13,877 derivative securities.
• The phantom stock units are payable beginning one year after termination of service as a director.

Sentiment

Score: 7

Explanation: The document is a routine regulatory filing indicating insider activity, which is generally neutral to slightly positive as it reflects management's confidence in the company. The acquisition of phantom stock units is a positive sign.

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 incentivizes directors through equity-based compensation.

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

Reporting of beneficial ownership changes by company insiders is a standard practice governed by SEC regulations, ensuring transparency in the market.

Comparison to Industry Standards

• Equity-based compensation, such as phantom stock units, is a common practice among large publicly traded companies like General Electric to align the interests of directors and executives with those of shareholders.
• Companies like Siemens, ABB, and Mitsubishi Heavy Industries, which are GE's competitors, also utilize similar long-term incentive plans for their leadership teams.

Stakeholder Impact

• The acquisition of phantom stock units by a director can positively influence shareholder confidence, as it aligns the director's interests with the company's long-term success.

Key Dates