YOU ARE THERE, 10:00 AM WEDNESDAY,
APRIL 23, 2008 GE SHAREOWNERS
MEETING ERIE, PENNSYLVANIA
If you remember the old TV series "YOU ARE THERE" This is sort of like
that because this column is from the verbatim transcript from the GE
annual meeting.
SHAREOWNER PROPOSAL NO. 2:
SEPARATE THE ROLES
OF CEO AND CHAIRMAN
CHAIRMAN IMMELT:
Shareowner Proposal Number 2 relating to separating the roles of
CEO and Board Chairman was submitted by Ms. Helen Quirini of
Schenectady, New York. I believe Helen is here today to speak on her
proposal.
MS. HELEN QUIRINI, shareowner:
Good morning, Mr. Immelt
CHAIRMAN IMMELT:
Good morning, Helen. How are you?
MS. QUIRINI:
I'm great. Board of Directors and my union brothers and sisters,
and all of you nice shareholders. I am Helen Quirini; I was employed by
General Electric for 39 years, retiring in 1980. I am chairperson of the
Local 301 IUE-CWA retirees and also co-founder of the GE Justice Fund,
which coordinates 15 retiree councils throughout the country.
In 2003 I spoke on the subject we're discussing after GE had launched a
legal battle to omit this proposal; the Securities and Exchange
Commission disagreed with them. I have also spoken on this subject
several times since. Last year it received 30% of the votes. The issue
of splitting the office of chairman and chief executive has become one
of the many governance issues to take a higher profile and efforts to
restore confidence in U.S. companies after a string of accounting and
other scandals. At GE, as you know, Jeffrey Immelt currently holds both
titles. The roles of CEO and chairman should be separated. A CEO who
also serves as chairman wields too much power. An independent chair
would be better able to monitor and oversee management of the company.
Part of the program makes boards more powerful and more functional, CEOs
more accountable. The roles of chairman and CEO require different
skills. Of the top 100 largest British companies, all but a handful
separate their CEO and the chair. An independent chairman would realize
he is the chairman of the board of directors that directs the company,
and that the CEO is an employee who must implement what they are doing
and not have a dual role. If the CEO and chairman had been separated,
could the disastrous quarter that lost 6% to $4.3 billion from the $4.57
billion a year ago, and the share value tumbled nearly 14%, have been
avoided?
I am also highly concerned that our pension trust has not been affected
by what has happened to GE stock. When can we get a report about what
has happened to our pension trust? Retirees from General Electric
Company acknowledge and thank GE for its recent one-time pension
increase, which was dearly needed because of the ravages of inflation.
Retirees are the largest single block of shareholders who are hurt by
the decline of the value of GE stock and the ones who need the money the
most.
In addition, GE has not paid into this fund for more than 20 years; only
employees have contributed each year. GE, the most profitable company in
the world, can well afford to take better care of the employees who put
them where they are today and created GE. [Applause] Because all
the retirees are being discriminated against, it is imperative that
current guaranteed minimum pension benefits for all retirees also be
paid. The most crushing issue, of course, is for an annual
cost-of-living adjustment, especially with what's happening today with
everything else. [Applause]
If these two issues are resolved, we retirees in Schenectady will not
hold our annual rallies in front of the General Electric Company in
Schenectady. I have been chair of that group for 28 years, since I
retired. And if this could happen, I will not hold another rally; I'm
tired of walking in front of the Company. And maybe if I win this
proposal I will not have to come to any more shareholder meetings.
Wouldn't that be great? Thank you. [Applause]
CHAIRMAN IMMELT: Helen, thank you.
WHAT YOU CAN DO TO HELP
We will continue to fight for a COLA for all GE retirees and for all to
receive at least the current minimum pension of $34 per month per year
of service. Please help. Send any and all contributions to:
GE RETIREES JUSTICE FUND
2917 HAMBURG ST.
SCHENECTADY NY 12303
Dues are $12. Per year, more if you can afford it, less if you can't.
Again this year I sent in $100. And challenge my friends to match me.
