GE is an American national conglomerate corporation started in Schenectady, Newyork with its headquarters in the Fairfield, Connecticut, United States. The company has got 11 operating units which are to be considered as main from technology to services. They had their vision as “we bring good things to life” and there mission is “passionate, curious, resourceful, accountable, teamwork, committed, open, energizing, always with unyielding integrity”. To bring these big ideas that is there vision and mission to life requires not only a strong culture, but also a clear strategy.GE strategy has 4 points in which it clearly indicates their strategy:
• “Be Global”, maintaining ...view middle of the document...
The board of directors are expected to meet 8 times a year for their meetings that are been scheduled and they supposed to attend the committee meetings also. In the meetings they do discuss about the immediate issues, their prospects, plans and performance of the company. They also perform some specific functions like
• Selecting, monitoring and guerdon the CEO and overseas their succession planning.
• Provide ideas and recommendation on the process carried out by senior management.
• Give ideas based on the result in the aspect of financial funds and their strategies.
• Analysis of risk management.
• Review of the process so that integrity maintenance can be checked.
Directors must be highly qualified in terms of values like professional ethics, practical wisdom, mature judgement and they must be able to commit themselves to achieve the interest of shareowners. They must also spend their time to carry their duties and they must be committed to their work. Directors who are CEOs can serve as two boards in public companies apart from GE and other directors can serve in four boards. If they serve beyond their limit then they would be considered as impair. Directors cannot be nominated after the age of 75 and they can do submit their resignation if there is any change in the responsibilities during their tenure.
Jeffrey R. Immelt – chairman of the board and CEO.
INDEPENDENCE OF DIRECTORS
A director is said to be an independent director based on the guidelines given below:
The independent directors are the future non-management directors. A minimum of 10 independent directors are expected and the goal of the board is there will two third of independent directors which implies that majority are said to be independent directors. This person shouldn’t have any relationship with GE. The person who will be selected is disclosed publicly and if the person fulfils NYSE rules apart from GE expectation it is still disclosed in the meeting. A director cannot be independent till the person is appointed by GE, if he receives fees other than direct compensation, if the compensation fee is received more than $120,000 by family members from GE, no contact with the auditor. At the time of independence determination if the director has any contact with the company directly or indirectly then the person will not be an independent director.
List of the independent directors in GE
W. Geoffrey Beattle Audit, chair-Risk
Dr. James I. cash, Jr Management development and compensation
Marjin E. Dekkers Management development and compensation
Dr. Susan J. Hockfied Chair-science and technology
Andrea Jung Management development and compensation
Ralph S. Larsen Management development and compensation
James J Mulva Audit
Mary L. Schapiro Risk
James S. Tisch Risk
Douglas A WarnerIII Chair- audit
Rochelle B. Lazarus Chair- Governance and public affairs.
SIZE OF BOARD AND SELECTION PROCESS
Shareowners do select the directors at the...