General Electric shares rose Monday after it was revealed recently appointed chairman and CEO Larry Culp bought $2.2 million worth of company stock last week.
the leader of GE on Oct. 1, one of Culp’s first actions during the company’s earnings report last week was to slash the quarterly dividend to just a penny a share. starting in 2019. The move frees up some cash for the beleaguered conglomerate but it is expected to be the first of many from Culp to turn the company around. Culp is facing multiple predicaments at GE, from the company’s ailing power business to ongoing accounting investigations by the Justice Department and the SEC.
Culp also inked a stock-heavy compensation plan when he signed with GE. The company is set to pay Culp as much as $317 million in annual pay and awards if he boosts GE shares dramatically over the next 4 years.