A farewell package of $89K -- per month?

A former GE executive lines up a nice perk after leaving the company.

By Kim Peterson Dec 26, 2012 4:52PM
A General Electric Co. logo Fabrice Dimier/Bloomberg via Getty ImagesJohn Krenicki put in 29 years at General Electric (GE), working his way up to lead the company's energy unit. He was an important guy there, one that Fortune speculated could be CEO one day.

Instead, he's retiring at the end of this year and will get a nice perk from the company: An $89,000 monthly allowance until he turns 60. He's about 50 now, so it will all add up to more than $10 million. In return, the company says in a regulatory filing, Krenicki can't go work for a competing company for three years.

This news was buried in a GE filing with the U.S. Securities and Exchange Commission earlier this year and uncovered by the ever-vigilant blog Footnoted. It's now in first place in Footnoted's annual contest for the worst item of the year.

Krenicki will also get a cash bonus of at least $2.9 million for 2012. He also gets to vest at age 60 under GE's supplementary pension plan. And Footnoted notes that some 2 million stock options that had not vested as of last year will now vest. GE's stock price was at $20.79 Wednesday, so Krenicki stands to pocket some serious change by selling shares.

Krenicki was a lifer at GE, and his career was profiled in Fortune last year. He relocated his family 11 times while at the company, including two stints in Europe. He led the plastics division for nearly three years before he was promoted to run the energy division. He admitted to Fortune that he didn't want to become CEO of the company -- an early indicator, perhaps, that he was on the way to retirement.

By the way, Footnoted has another candidate for worst item of the year that I like even better. Dell (DELL) spent $1.9 million to move executive Stephen Schuckenbrock from Round Rock, Texas, to Plano, Texas. That's quite a pricey move for going 200 miles. About $1.5 million of that total was to pay Schuckenbrock for the loss on the sale of his house in Round Rock.

Schuckenbrock didn't stay for very long after the move. Earlier this month, he resigned "to seek new opportunities."

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231Comments
Dec 26, 2012 5:34PM
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$2.6 Billion a day on welfare, $854 million a day in interest payments on the national debt, $3 billion a day on medicare and medicaid, $4 billion a day on social security, and $1.8 billion a day on defense. So going after the rich is going to solve problems in spending, HOW?? All these articles from the media, and we are supposed to believe there is no political propaganda going on? All this crap about the rich and the fiscal cliff is all designed to divert us from the real problem, WE HAVE CROOKS IN WASHINGTON THAT HAVE BEEN STEALING OUR WEALTH AND CARE NOTHING ABOUT US. They say they are for the little guy as they keep on spending and make the banker crooks richer and richer. The same crooks that got us into this mess and feed us lies about the economy is getting better are in it for one thing, to get wealthier and get re-elected. CROOKS HELPING CROOKS; and so many believe the lies. It's all about jobs dummies!!!!!
Dec 26, 2012 5:59PM
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Let`s not forget GE pays no taxes.We constantly hear the nasty far right complain about

free loaders.Let`s hear them be consistant about their bellyache.Also, Ge employs more people in foreign countries than America.

Dec 26, 2012 6:16PM
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Apples sitting on 300Billion of iPhone/IPad cash..just stockpiling it. How about opening a few US plants in appreciation of the 3.2 apple products/household that the American people of buying from them. How about endowing a few universities, medical research...anything to actually HELP the country, the world. How about some friggin corporate patriotism?
Dec 26, 2012 6:25PM
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No wonder GE can't afford to pay any corporate income tax. 
Dec 26, 2012 5:48PM
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GE can stick their products where the sun don't shine. This consumer is done and just plain sick of it. $89k a month?! I refuse to help any company pay anyone that much money, I don't care who it is. No entertainer is worth it to promote and no Executive is worth it. I have all GE appliances in my home and when they $%*! the bed, I will replace with LG.
Dec 26, 2012 7:01PM
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Yes, but it's really the unions who are the problem. All those people making $50,000 a year are crimping the style of all these executives. How can they brag about their 40 foot yacht when others in their country club have 50 footers? And how can they possibly afford a staff of 10 maids/butlers/grounds keepers/personal a$$ wipers on just $25,000 a month? You need at least that much just to find good help so you can pay them $22,000 a year for 80 hour weeks. It is really tough to be in the upper class these days. All these commoners think they are entitled to that retirement pay of $1500/ month that they paid 7% of their salary for those 40 years of working like a slave will just have to suck it up so that the privileged can all continue to buy the latest Bentley every year. It would be so ghetto to be driven around in the same old Bentley for more than a year wouldn't it?
Dec 26, 2012 5:57PM
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This is nuts.  Glad he wasn't CEO, because then it would be $100 million+ settlement.  It's really sad, that only the higher ups get guaranteed contracts.

Dec 26, 2012 6:34PM
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I agree, i will not buy another GE product ever.
Dec 27, 2012 1:27AM
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Our government has been stealing and getting fat off the tax payers for years. Give all government employees including the legislative, executive and judicial the same retirement as us, require them to have a 401 or some type of retirement account or retire broke. Things would change for the better.
Dec 26, 2012 8:50PM
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GE should clean up the PCPs they dumped in the Hudson River. ****s !
Dec 26, 2012 5:17PM
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Good thing they have a direct line to the white house.
Dec 26, 2012 6:11PM
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Yes and we the customers are paying for all this.  Wow.  And this is only one giant corp of many.

Guess who's ruling the world. 

 

Dec 26, 2012 6:39PM
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We wonder why as a nation we are in trouble,  for starters this is one, this man will make more in retirement than i would make in, lets say 50 lifetimes. Here's an idea lets even the odds a little and actually give someone working for you more than a twenty cent raise and then tell them they should be grateful to have their job.  I say you should be grateful to have the employees you have and instead of taxing the fool out of the say middle class,  lets be fair and flat tax everyone at the same rate regardless of income and tax business at business rate.  No more smoke and mirrors and no more tax shelters for large corporations.  29 years or not this is a joke.
Dec 26, 2012 7:56PM
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Well all you idiot consumers that have to have the next bid thing keep buying it they keep making it..I find it amazing how we survived without cell phones till the 1990'S NOT TO MENTION A PICKUP TRUCK THAT WAS FOR WORKING UNTIL IT BECAME A YUPPIE NEED AND NOW THEY COST 50K LOTS OF IDIOTS OUT THERE!!
Dec 26, 2012 7:54PM
Dec 26, 2012 7:37PM
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It's all a media clifff.......we're just suckers to fall for it......
Dec 26, 2012 11:01PM
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If it has a GE label on it I will refuse to purchase that item, if its a light bulb or appliance. They will not get a dime of my money after reading this.
Dec 26, 2012 10:47PM
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Thank God I sold that tiny amount of GE stock that I had. This is nuts!

John Krenicki put in 29 years at General Electric ... he's retiring at the end of this year and will get a nice perk from the company: An $89,000 monthly allowance until he turns 60. He's about 50 years old now, so it will all add up to more than $10 million. 

I suggest anyone else with GE stock dump it too. Look how they run their business...into the ground!
Dec 26, 2012 6:02PM
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Who cares?  As long as GE is honoring their commitments to it's other employees in terms of pensions and retirement health care benefits, there's no problem, but if they are crying poor and have let people down as they retired, then it's wrong.  Many big corporations have restructured to cut costs and left people out in the cold with broken promises and dishonored contractual obligations.  In those cases, the CEOs shouldn't collect anything.  The government should make companies live up to all employer obligations before any stockholder or CEO/ bonus payments as a matter of law.
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