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

  • 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.
Comments (49)
  • Tradevestor
    , contributor
    Comments (4073) | Send Message
     
    This is huge, in addition to the points here http://seekingalpha.co...
    4 Mar, 02:18 PM Reply Like
  • sami12159
    , contributor
    Comments (27) | Send Message
     
    He gets paid for doing a terrible job . Not suprised he owns the board and they are a sad lot. Poor stockholders being ripped off.
    4 Mar, 02:20 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    Now let's see,he bought stock with his bonus
    What will he do for grocery money. Omg
    Did he buy the stock in the open market like the rest of the shareholders or did he exercise an option with a$10 strike price
    I'd buy some at &10 too since it's trading at 25
    What is so miraculous about this purchase
    One would be a fool not to exercise an in the money stock option
    How many options were granted when the stock was below $10?
    This exercise is no big deal and certainly isn't a show of confidence in the company.its just picking money up off the floor
    4 Mar, 04:03 PM Reply Like
  • Hendershott
    , contributor
    Comments (1539) | Send Message
     
    Snoop, He paid $25.19 for the stock, bought in the open market.
    4 Mar, 04:54 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (840) | Send Message
     
    Snoop now has posted the same erroneous information on TWO separate articles. Immelt paid the EXACT same amount I did on Monday when I bought an additional 200 shares. Unfortunately, with the "Immelt haters" facts rarely matter.
    5 Mar, 05:22 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    Wisepoker and hendershot
    If what you say is true that immmelts paid ?25 for his shares and he had options he could have exercised below market I apologize.
    I didn't think it possible that a man would be that stupid to pay full price for shares when he could have exercised options with a strike price below market
    That is the kind of judgement that brought GE from $40 to $6 a shre. You need a new ceo
    5 Mar, 08:56 AM Reply Like
  • WisPokerGuy
    , contributor
    Comments (840) | Send Message
     
    Immelt took his yearly CASH bonus - not stock options - and bought GE stock at $25.19. I'm not sure of the details, but I would think part of Immelt's compensation package would also include stock options that probably require a vesting period. Obviously, he would exercise those too at a cheaper price when he had the chance as ANYBODY would.

     

    You can spin this any way you want, but when the CEO of ANY company takes $3 million and buys the company stock at market price... that's bullish. And frankly, I couldn't care less what GE's shareprice was in 2006. All I care about is where the company will be in the future. That should be the only thing any shareholder worries about.
    5 Mar, 10:45 AM Reply Like
  • Landsharks6
    , contributor
    Comments (105) | Send Message
     
    If im not mistaken there have been 2 others that have also purchased,I don't know but when you have well over 2 years of back orders for your products & raise the dividend 20% & have risen from where it was during the financial debacle to where it is now, spinning off G.E. Financial and its the top holding of our Congress members, I see all these as good signs as well as paying a dividend since ,I don't know 1890. This is a slow growth stock that is great in a DRIP program and I am very comfortable with where its at ....IMHO
    5 Mar, 02:54 PM Reply Like
  • Hendershott
    , contributor
    Comments (1539) | Send Message
     
    Snoop, click on the highlighted "picking up 105K shares" in the article. You'll see the form 4 from the SEC which will tell you what the transaction was. We'll find out whether it was a stupid move or not. Immelt has refocused the company into energy, finally ditching GE Capital would be encouraging though.
    5 Mar, 03:42 PM Reply Like
  • DrP79
    , contributor
    Comments (1059) | Send Message
     
    1.9 million shares at about $25 = $47.5 million of his net worth tied up in GE stock.

     

    with about $3.5 million bought in the last week is a pretty good chunk of change.
    4 Mar, 02:25 PM Reply Like
  • wapiti
    , contributor
    Comments (711) | Send Message
     
    At least he buys GE stock. All the other CEOs at these BS small and mid cap companies are selling as fast as they can while authorizing huge buybacks at all time highs! Sad thing is SEC and Wall St looks the other way and actually applauds them
    4 Mar, 02:25 PM Reply Like
  • fuzzymc
    , contributor
    Comments (106) | Send Message
     
    All those other BS companies as you call them, have had there stocks rise, as opposed to GE which has done Nothing!!
    4 Mar, 02:31 PM Reply Like
  • Regarded Solutions
    , contributor
    Comments (16081) | Send Message
     
    Gotta love that guy. He has great instincts.
    4 Mar, 02:43 PM Reply Like
  • thomasjmartin
    , contributor
    Comments (25) | Send Message
     
    GE down from $42....
    4 Mar, 02:45 PM Reply Like
  • chopchop0
    , contributor
    Comments (3305) | Send Message
     
    Exactly. GE is a doggiest of the blue chips, esp coming out of the recession. I can't wait to dump this heap when it gets north of 28.
    4 Mar, 03:13 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    I'm glad one sane person remembers
    4 Mar, 04:04 PM Reply Like
  • Rhinoish
    , contributor
    Comments (98) | Send Message
     
    why in the world would you wait holding shares of a company you hate? if you don't like it, dump your shares now...
    4 Mar, 05:03 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (840) | Send Message
     
    Or you can say the GE is up from $10.70 when I bought in 2009. It's all relative, correct?

     

    It's funny to me that GE shareholders (maybe more then any other stock) continue to look at the shareprice of 10 years ago and scream they got screwed when anyone could have picked shares up in 2009 or even 2010 at rock bottom prices and been sitting pretty right now and facing some nice upside possibilities in the next year or two. I guess some people just love to curse the darkness?
    5 Mar, 05:28 AM Reply Like
  • chopchop0
    , contributor
    Comments (3305) | Send Message
     
    "It's funny to me that GE shareholders (maybe more then any other stock) continue to look at the shareprice of 10 years ago and scream they got screwed when anyone could have picked shares up in 2009 or even 2010 at rock bottom prices and been sitting pretty right now and facing some nice upside possibilities in the next year or two. I guess some people just love to curse the darkness?"

     

    If you compare to most other blue chips, you see why people get annoyed. WMT, JNJ, DIS, PFE, etc have all done better.

     

    "why in the world would you wait holding shares of a company you hate? if you don't like it, dump your shares now..."

     

    Don't feel like taking the loss and don't feel like sticking that money anywhere else atm. I'll collect the dividend while I wait for it to go back up
    5 Mar, 08:55 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    That's right Thomas
    When a man has options to buy stock below market and pays full price,that is the kind of business judgement that took GE stock from 46 to 5
    5 Mar, 09:17 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    Chop chop
    They scream that they got screwed because they did
    No shareholder likes to be screwed while jack welsh rides off into the sunset with millions and a legacy of a visionary
    5 Mar, 11:44 AM Reply Like
  • bobbartholomew
    , contributor
    Comments (2) | Send Message
     
    Even though it's a small portion of his total holding, I would rather doubt if he would blow $3.64M if he thought it was a money loser.
    4 Mar, 02:45 PM Reply Like
  • John Drake
    , contributor
    Comments (15) | Send Message
     
    This is from memory but I believe he purchased 40,000 shares at 40 bucks. The stock proceeded to visit 5 and change so what credibility does he have?
    4 Mar, 02:45 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    John
    He doesn't have any
    5 Mar, 09:18 AM Reply Like
  • thomasjmartin
    , contributor
    Comments (25) | Send Message
     
    GE down from $42 under Immelt. Great time to buy Jeff!,
    4 Mar, 02:45 PM Reply Like
  • Sirvasq
    , contributor
    Comments (322) | Send Message
     
    The cynics are pathetic. Inside buying is always cited with approval. Rarely does any inside buying of any consequence take place. $2.64M is as non-trivial inside buying as you will ever see of a large cap stock by a president who already owns shares. Very bullish, even though calculated to show confidence. It does. No position in GE.
    4 Mar, 04:45 PM Reply Like
  • mydogmoe
    , contributor
    Comments (354) | Send Message
     
    I see a lot of Immelt bashing here but Frankenstein was created by Bob Welch. If any posters bought GE after it bottomed they could have potentially enjoyed a maximum 400% gain. No one made you stay on the Titanic after it struck the iceberg. You have had 5 consecutive years of stock appreciation...
    4 Mar, 05:39 PM Reply Like
  • rubel
    , contributor
    Comments (509) | Send Message
     
    ahhh get it right its not bob welch it is jack welch you have no reason to be in the stock market, the reason ge tanked at less then 6$ a share is due to immelt not JACK welch. oh if you want, i dont have a boarding pass for the titanic but i do for the lusitania!
    7 Mar, 10:22 AM Reply Like
  • hexli1
    , contributor
    Comment (1) | Send Message
     
    One of the greatest corporate disasters of our time.
    Employees first and stockholders down the road.
    Check the charts and dividends for 15 years.
    Sad
    4 Mar, 05:44 PM Reply Like
  • mydogmoe
    , contributor
    Comments (354) | Send Message
     
    I feel for the employees and many others who were in the financial arena in those cowboy days of lending. Lehman, Bear, Colonial Bank and Wachovia just to name a few casualties. As far as those who bought the stock, you had plenty of time to get out. A wise old investor once told me, "Marry the person you love not a stock." I won't forget that tip...
    4 Mar, 06:12 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    Well said hexi
    5 Mar, 09:19 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    My dogma
    Or how about fear and greed?
    5 Mar, 09:20 AM Reply Like
  • cbmetcalfe
    , contributor
    Comments (86) | Send Message
     
    Everyone against THE Conglomerate: please sell. Drive the price further down and then I will buy more. Thank you.
    In reality I get the people who are anti GE. But I do feel we have reached a bottom on price or very close to it.
    Long GE.
    4 Mar, 06:12 PM Reply Like
  • James Bjorkman
    , contributor
    Comments (668) | Send Message
     
    Took profits on most of my shares today. Just tired of all the running in place. If it zooms higher, well, at least I did keep a few. But I might as well own an index fund as own GE.
    4 Mar, 06:31 PM Reply Like
  • ca7711
    , contributor
    Comments (404) | Send Message
     
    cb,
    GE stock went from 8 dollars to 25 dollars in the last 5 years does it really have the impetus to push substantially higher? I am long but lets not be delusional....
    4 Mar, 06:48 PM Reply Like
  • Dale Mackey
    , contributor
    Comments (110) | Send Message
     
    waiting for the capitulation of GE being controlled more by the finance company than an industrial conglomerate, as it had been for oh so long.. I think we'll see the equivalent of 40, after they spin out a large portion of the financial division..

     

    to those relating angst over the decimation of GE during the crisis... "old sins cast long shadows"..
    4 Mar, 08:08 PM Reply Like
  • Just an Ironworker
    , contributor
    Comments (11) | Send Message
     
    No matter what he does, I make $$$...'cuz I bought at $8!!!!
    4 Mar, 09:01 PM Reply Like
  • JLesinski
    , contributor
    Comments (136) | Send Message
     
    Is anyone else surprised that he only got a $2.6M bonus? Seems a little low for a company/CEO like GE and Immelt. Or is my math wrong?
    4 Mar, 10:12 PM Reply Like
  • gray67
    , contributor
    Comments (42) | Send Message
     
    Rumor is that Jeff was dumping shares Tuesday PM.
    5 Mar, 12:30 AM Reply Like
  • WisPokerGuy
    , contributor
    Comments (840) | Send Message
     
    Really? What are your sources?
    5 Mar, 05:30 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    Gray67
    Too funny
    If that's true,it will shut up the immmelts lovers,the value deystroyer
    5 Mar, 09:38 AM Reply Like
  • rubel
    , contributor
    Comments (509) | Send Message
     
    immelt did the same thing in 2006. when the stock price went from 60$ to 30$. immelt said in the 2006 "i asked to have my bonus paid in ge shares.....im totally aligned with you"

     

    remember immelt didnt buy these shares at market price....he also exercises options. its funny, even if the stock price drops they continue to issue options....just lower the strike price for these wothless equity destroying executives, like immelt and andrea jung. they make money both ways. and they are there to be WORKING FOR US THE SHAREHOLDERS!

     

    shareholders!!!!! wake up, vote against these worthless individuals, vote to split ceo/chairman....vote for term limits....rid the board room of andrea jung

     

    carl ichan....where are you!!!!!! ge needs someone like you!
    5 Mar, 09:34 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    The immmelts lovers tell me I'm wrong about him exercising options
    That say he likes to buy at the market
    That is the kind of judgement that tanked the stock
    5 Mar, 09:40 AM Reply Like
  • rubel
    , contributor
    Comments (509) | Send Message
     
    to ironworker.....so did i buy at 8$ and less, but what you have to understand if you are any real investor....immelt has over his tenure destroyed equity of this company and value. the board is self serving with one board member that herself(andrea jung) was fired as a ceo at avon.

     

    the board has not changed at all, this is the same directors who are voted on each year and who allowed ge to almost go under in 2009.

     

    until immelt is gone and the board has totally new faces the investment community will not look at ge as a sound investment. ge has a long way to go to change it's image to the investment community, and immelt buying this small equity position relative to the shares outstanding is nothing. as i stated earlier he did this in 2006 when the share price by then was down by 50%. under immelt if you were to buy on the day he took office as ceo your investment would right now be worth almost 65% less (excluding reinvestment of dividends). if you would have sold your holdings in 2009, you would have lost almost 85-90% of your 2001 investment. immelt blames everything but himself. he blames 9-11, he blames katrina, he blames gulf war, he blames the housing bubble, he needs to blame the board members and the face that reflects back at him every day when he looks in the mirror.
    5 Mar, 10:22 AM Reply Like
  • Landsharks6
    , contributor
    Comments (105) | Send Message
     
    Im just gonna keep aligning myself to our lawmakers G.E. is the #1 stock owned by Congress period, again its a slow growth drip stock that will pay a patient investor extremely well over time. Only company left out of original 10 that started the DOW.Every company has its problems , Apparently G.E. has continued to able to overcome any obstacles for 120 years & pay their shareholders. Its not a Netflix or Amazon.
    5 Mar, 03:06 PM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    .landshark
    If you look to the self serving crooks in congress for investment guidance,I am disappointed in you.
    Until recently they could trade on inside information,legally but that has changed
    The only problem now,is that no one knows how to enforce it because they don't know what congressmen may have know
    5 Mar, 04:37 PM Reply Like
  • Landsharks6
    , contributor
    Comments (105) | Send Message
     
    Snoop, no sir I do not , however I look at all aspects on how I would like to create income & if congress happens to own a stock I am interested in I certainly add it to the plus side, even if they are self serving crooks, they do & will always have insider knowledge.

     

    Good Luck
    8 Mar, 11:34 AM Reply Like
  • 50 cent it is
    , contributor
    Comments (1396) | Send Message
     
    Landshark
    Good point
    9 Mar, 09:01 AM Reply Like
  • James Bjorkman
    , contributor
    Comments (668) | Send Message
     
    I'll say this for Immelt: it was impressive that he moved the share price of this behemoth up 50 cents up practically all by himself with this little purchase. Of course, it's now back down to where it was before he announced it - but that's all right, unless you were one of the suckers who bought the pop, I suppose.
    13 Mar, 12:34 AM Reply Like
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