GE +1.8% as Jeff Immelt spends his entire 2013 cash bonus on shares

|By:, SA News Editor

CEO Jeff Immelt demonstrates his confidence in GE (GE +1.8%) by investing his entire 2013 cash bonus in GE shares, picking up ~105K shares yesterday for more than $2.64M and following a purchase of 40K shares last week for ~$1M.

However, it's a relatively small portion of the 1.9M shares Immelt owns directly in GE; “considering he’s been the CEO for about a decade and been paid a lot of money, that’s not particularly impressive,” says Alan Johnson, head of a compensation consulting firm.

Chief executives sometimes spend their own money on company stock as a way to shore up investor confidence; it's worked for at least a day, and GE investors hope for a repeat of Morgan Stanley CEO James Gorman's 2012 purchase of 100K shares that's netted him ~$1M in paper profit.