Larry Culp Appears Set to Continue as Chief Executive of GE Aerospace with Tempting Cash Rewards

Larry Culp is set to continue leading GE Aerospace, with the company’s board of directors approving a new employment agreement on June 30. This extension ensures Culp will serve as CEO and board chair at least until the end of 2027, with a possibility to extend his term through 2028.

This decision follows a significant restructuring of General Electric, completed in April under Culp’s supervision, which focused the company’s operations exclusively on its aerospace division. Although General Electric remains the parent company, it now operates primarily under the GE Aerospace brand.

Culp’s initial contract, which was due to expire on August 17, has been replaced by a new agreement that includes an annual base salary of $2 million, a bonus target up to double his salary, and an annual equity award valued at $15.3 million. The board emphasized the significant value created under Culp’s leadership since he assumed the roles of chairman and CEO in 2018 and expressed confidence in his continued leadership for the benefit of shareholders.

Despite speculation that Culp was a leading candidate to succeed Boeing’s outgoing CEO, David Calhoun, Culp reportedly declined the offer, choosing to remain with GE Aerospace.

Under Culp’s direction, GE has undergone a comprehensive transformation, resulting in GE Aerospace becoming the company’s core entity. Like other aerospace firms, GE Aerospace faces challenges with supply chain and labor issues, impacting the production targets for its Leap turbofan engines, which power the 737 Max and Airbus A320neo jets.

Culp began his career at a division of life-sciences company Danaher in 1990, eventually becoming its CEO from 2000 to 2014.

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