FAIRFIELD, Conn.--(BUSINESS WIRE)--July 31, 2002--GE's Chairman and Chief Executive Officer Jeff Immelt and Chief Financial Officer Keith Sherin today signed and filed sworn statements with the U.S. Securities and Exchange Commission (SEC) affirming the SEC filings made by the Company in 2002.
The documents for which Immelt and Sherin signed include GE's 10-K for 2001, its 10-Qs for first and second quarters of 2002, and its 2002 proxy statement.
"Certifying our SEC filings underscores our unyielding commitment to integrity and to providing investors with accurate, relevant and understandable information about GE," Immelt said. "As CEO, I stand behind GE's performance and our people every day.
Immelt also announced that the Company's Board of Directors has approved actions that enhance governance and financial disclosure, and further align senior management's personal interests with the long-term interests of shareowners. These changes will be implemented by the end of the year.
-- GE has endorsed and will comply with the requirements of the New York Stock Exchange, the Sarbanes-Oxley Act, and new SEC rules related to corporate governance and accounting.
-- GE will expense the fair value of employee stock options starting this quarter. Immelt said, "Options are held by more than 35,000 of our employees and will remain an important part of our incentive compensation going forward. We've been disclosing the effect of options in our annual reports, but investors clearly want these expenses incorporated into results, and we will do so."
GE estimates that under current accounting rules, expensing options will reduce 2002 net income by less than $30 million, or less than one cent per share; the expense will increase to about three cents per share over the next three to four years as the cost is phased in. This follows current FASB rules.
-- GE will implement a holding period on stock option exercises for senior officers; they will be required to purchase GE stock with option gains and hold that stock for at least one year. Senior officers also will be required to accumulate and hold GE stock equal in value to a specified multiple of their base salary for as long as they hold the position.
"GE is about performance with integrity," Immelt said. "The GE team is proud of our Company and dedicated to building long-term shareowner value."
GE (NYSE: GE) is a diversified technology and services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.
Caution Concerning Forward-Looking Statements
This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. More detailed information about those factors is contained in GE's filings with the Securities and Exchange Commission.
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David Frail, 203/373-3387
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