GE Stock Price Forecast: General Electric Company falls as CEO faces backlash over bonus

NYSE:GE dipped by 1.18% on Friday, lagging the broader markets which finished positive for the week.
General Electric CEO Larry Culp is in some hot water with shareholders over a big payday.
Culp does now have incentive to raise the price of GE’s stock, as it remains a reopening play to investors.

Stocks Reporter FXStreet

NYSE:GE has experienced more volatility than a century-old company with a $117 billion market cap is used to having and shareholders may be getting impatient. Friday saw General Electric fall by 1.18% to close the final trading session of the week at $13.39. This concluded another choppy week for the industrial conglomerate, although the stock remains above its 50-day and 200-day moving averages, which shows that General Electric is exhibiting higher highs and higher lows.

Stay up to speed with hot stocks' news!

A recent announcement by General Electric about the restructuring of CEO Larry Culp’s pay has shareholders and shareholder advisors up in arms. Nobody is denying that Culp has done an excellent job of remodelling the century old company into a wonderful turnaround story, after the stock remained stagnant for years. But when Culp took over, there was a clause in his contract for a $232 million bonus if the stock price were to climb above $31 per share. Now, citing issues related to the COVID-19 pandemic, General Electric has lowered that share price to $16.68 for a total of 30 consecutive days.

GE Price prediction

Naturally, shareholders are upset as a lower price target for Culp’s bonus theoretically means he needs to achieve less for the company in order to meet the lower threshold. While General Electric remains a popular play on the reopening of the economy, especially considering its aviation and healthcare businesses, investors may have some pause now about how dedicated Culp is to the long-term health of the stock.

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Stocks Reporter

FXStreet

EUR/USD flirts with three-day lows near 1.1570

EUR/USD resumes its march south on Thursday, revisting the 1.1570 region, or three-day lows, ahead of the opening bell in Asia. The intense sell-off in the pair comes in response to the solid performance of the US Dollar amid the still unresolved crisis in the Middle East. Moving forward, investors are expected to shift their focus to the release of the US NFP on Friday.

GBP/USD stays offered near 1.3340

GBP/USD fades Wednesday’s uptick and trades with decent losses in the 1.3340 zone in the latter part of Thursday’s session. Cable’s weakness, alongside the rest of the risk complex, follows the strong performance of the Greenback amid intense geopolitical jitters.

Gold: further weakness could challenge $5,000

Gold comes under fresh selling pressure on Thursday, slipping back below the $5,100 mark per troy ounce. Persistent strength in the US Dollar (USD) is preventing the yellow metal from building a meaningful recovery, even as markets remain risk-averse amid the deepening conflict in the Middle East.

XRP rises as crypto market steadies despite Middle East war

Ripple (XRP) continues to demonstrate notable resilience as the cryptocurrency market navigates the persistent war in the Middle East after the United States (US) and Israel attacked Iran on Saturday.

Two PMIs, two Chinas

China’s economic data are often treated with a degree of caution by global investors. The challenge is not necessarily that the numbers are incorrect, but that they can describe very different parts of a vast and complex economy. Nowhere is that more evident than in China’s PMIs.