Larry Culp seems poised to remain chief executive of GE Aerospace for several more years.
The company’s board of directors on 30 June approved a new employment agreement for Culp that extends his term as CEO and board chair at least until the end of 2027.
The agreement, disclosed by GE Aerospace on 1 July, also includes provisions that could see Culp remain at the helm until the end of 2028.
The vote follows parent General Electric’s completion in April of a restructuring overseen by Culp that involved the once-mighty industrial conglomerate divesting its non-aerospace businesses, leaving GE Aerospace as its primary remaining business entity.
General Electric remains the parent company but operates under the name GE Aerospace.
“Larry has proven to be an extraordinary chairman and CEO for GE and now GE Aerospace, and the board is excited to have secured his leadership during this important time in the industry,” says GE Aerospace lead independent director Tom Horton. “The Board and I are confident that Larry and the GE Aerospace team will continue their strong execution for shareholders and drive the company’s leadership in the future of flight.”
Culp’s contract had been scheduled to expire on 17 August. Under the new contract, Culp will earn a base salary of $2 million annually, an annual bonus target of up to twice his annual salary, and an annual equity award worth $15.3 million.
“The board considered the best interests of shareholders, the significant value creation under Mr Culp’s leadership since he became chairman and chief executive officer in 2018, and the benefits of securing his continued leadership for the company,” GE says.
Though the agreement extends Culp’s contract through the end of 2027, it provides that he and the company can further extend his employment until the end of 2028.
Culp had reportedly been a top candidate identified by Boeing to possibly replace that company’s chief executive David Calhoun, who intends to leave at year-end. Culp reportedly declined Boeing’s offer.
Culp has overseen a wholesale transformation of GE that left GE Aerospace – long among the most admired of GE’s portfolio divisions – as essentially its sole remaining entity.
GE Aerospace has been working, like other aerospace companies, to overcome significant supply chain and labour troubles. The issues have kept GE Aerospace from meeting production ramp goals on its Leap turbofans, which power the 737 Max and Airbus A320neo family of jets.
Culp started his career in 1990 at a division of life-sciences company Danaher, where he rose up the ranks. He was Danaher CEO from 2000 to 2014.
