Alexandra A. Brown has notified us that she intends to submit the
following proposal at this year’s meeting:
GE employees create a great deal of value for the Company and
its shareholders. In GE’s 2020 annual report, CEO Larry Culp
acknowledges “I often have witnessed our employees’ battle-tested
commitment and grit over the past two-plus years. Nowhere was this
clearer than in the face of the pandemic, and I am profoundly thankful
to them.”
Yet GE has for years prioritized Wall Street’s appetite for growth
through risky acquisitions rather than ensuring the sustainability of
its core businesses, leaving the company in a profoundly weakened
state. To cut costs and grow profits, the company has also hollowed
out its US workforce – from 277,000 workers in 1989 to just 70,000
today – even while relying on $2.2 billion in federal and state subsidies
and serving as a major federal contractor.1
An employee representative on GE’s Board would add knowledge
and insight on issues critical to the success of the Company, beyond
that currently present on the Board, and may result in more informed
decision making. Moreover, employees have a sincere interest in the
ongoing viability of the company, aligning their interests with those of
long-term shareholders. This perspective is needed on the GE board
now more than ever, to ensure the proposed spinoffs of GE’s divisions
into publicly traded companies is only undertaken if it can be done in
a manner that protects the integrity and viability of the component
parts, including the expertise of the GE workforce.
GE has long described its culture as a competitive advantage,
helping it attract and retain top talent. GE should act to protect and
strengthen its human capital, particularly given the uncertainty
presented by its impending corporate restructuring. We strongly
believe the Employee Representative Director would promote GE’s
continued success.