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
bossrjc
Dec 27, 2012 4:40PM
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Another big company that supported Emperor Obummer.   And the Dems think the Republicans have all the money.  
Chuck Lantana
Dec 27, 2012 4:33PM
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I definitely don't deserve anything like this as I'm just a teacher. My job helps so fewer people, and I'll only have worked 38 years as one. This guy's only getting about 13 million in total pay...Thanks GE and all the stockholders (and voters), for rewarding the people who are accurately bringing the truly good things to life.
Akimofro
Dec 27, 2012 4:12PM
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And these are the types of guys that the GOP is trying to protect while taking us over the fiscal cliff...
Lucky667
Dec 27, 2012 4:05PM
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No wonder these companies don't do so good for thier stock holders..... this kind of payouts should be against the law.
Soxiemomma
Dec 27, 2012 3:55PM
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Just curious. If the rich were required to pay their fare share like you suggest and started doing so at a high rate, would that solve the problem? Would you really be happy then? Would you continue to rant about a story like this? Would the rich paying more change the way the economy grows and the unemployment rate fall? I am not sure. The haters on this vine would continue to hate.
Northern Transplant
Dec 27, 2012 3:51PM
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Good luck to this GE executive.  It looks like he has a great employment contract for himself.  I'm sure that over his 29-year service, he worked real hard, sacrificed his personal and family time for the good of the corporation.  Yep, a real good company man.  He may even be worth the payout.  The only problem I have with any of this, is that GE paid no taxes in 2011.  It was all legal, I'm sure; they have the best corporate lawyers and tax accountants money can buy.

I know that these salaries and employment contracts may seen outrageous to so many of us, but it is very similar in other large corporations.  Executive salaries and compensation have grown exponentially since the 1970s, while salaries for the average worker have stagnated.  Jack Welch, who is so revered in the corporate world, showed every one how to do it.  They didn't call him Neutron Jack for nothing.  Only the buildings were left standing.  Pass on your accolades to good ol' Jack.  He showed everyone in the corporate world how to out-source, eliminate jobs and make lots of money for themselves.
Billie Hobbs (BR549OK)
Dec 27, 2012 3:45PM
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Think About It...

Former CEO of GE is the jobs czar under Obama, GE closed down in America and relocated to China.

Two thirds of congress doubled their individual net worth during the worst economic period of US history.

Obama is going to raise every ones  taxes with the blessing of the Republicans and particularly that testicle less, J Boehner.

Rest assured michelle will be flitting around the world with her usual small army of assistants while grimacing and whining about her first time experiences with her pride in the very country her ol man is supposed to be leading...????

You think about all this then tell me something is NOT rotten in the State of Denmark...!!!!

Actually, please don't tell me... It's depressing enough without you're reminders...

John West (John West)
Dec 27, 2012 3:23PM
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Reading this, a lyric from yesterday comes up:  "...nice work if you can get it.  And if you get it, won't you tell me how?"
SuMtoNe
Dec 27, 2012 3:14PM
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dam where can i apply to work for so many years and get a good pension =( wish I can find a job that pays well... or even yet FIND A JOB
AgileAnt
Dec 27, 2012 3:13PM
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His wife and kids are probably really screwed up by the 11 moves during his career.  Add to that their self-esteem issues due to never being able to equal or exceed dad's "success", and the fact that they will never need to really work hard for anything... Or their kids or grandkids.  Yeah, he got the money, poor bastid.  He can have it.  He can go buy an eastern bloc fighter jet toy, then lament that his eastern bloc fighter jet isn't as fast as his friend's eastern bloc fighter jet.  It never ends.  Needy bastids.
URA_Libertarian
Dec 27, 2012 2:48PM
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And whos money is this? Not yours is it? You do not like the bailout...what did you people do???...just go and vote the same people that gave out the bailout. LOL..stupid republicans and Democrats...both are to blame and if you vote for either one of these sides YOU are to blame as well. Stupid arrogant Americans just watched themselves get out educated the past 30 years and now u f%^ks wondering why the jobs have left...LOL....u voted for this leadership over the past 30 years and are now wondering what is wrong. America is no longer the best place in the world to do business or invest....we dont get back to that and you can say goodbye to the way of life you little spolied brats have become accustomed to. I wish i could sit most of you down with the Indians I have to hire becuase American does not have the talent in this country and listen to these people talk about how lazy most Americans are....people need a eye opener. Rest of the world is catching up to us (Education) and while us Americans should be accepting this and taking the benifits of lower cost, we are just sitting around bitching on why we just lost a job...we have failed to adapt to the changing world around us and stay ahead of other countries and keep our standard of living. Now we are like lil children stomping on the ground crying for the federal govt to save us...LOL.  

kbbcoop
Dec 27, 2012 2:45PM
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For 89k a month I wouldve moved my family every week
old man 2012
Dec 27, 2012 2:42PM
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I am one of the little guys at GE, (a field service rep), not even a christmas card or any kind of thank you for another profitable year.

Possibly get a 2% raise again this year. They show no appreciation to their employees that are on the bottom of the food chain. Retirement stinks to high heaven.

Dannyo65
Dec 27, 2012 2:41PM
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And to think I was paid 14K a year whenI was a Marine to take a bullet and die for this Country! Whats wrong with this picture?
bobslats33
Dec 27, 2012 1:51PM
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Lucky, yesterday  we sold the GE stock bought at $8  for the grandkids
LostOnEarth
Dec 27, 2012 1:13PM
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The Republican, Neo-Con. Libertarian and Tea Party Fascists plans to take over America will never succeed as long as all us vigilant, just and patriotic Democrats are there to STOP you.

 

It will NEVER happen under our watch!

 

youtube.com/watch?v=​7BZCfbrXKs4

 

God bless Freedom, Prosperity and Justice for all in America!

 

P.S DIE WALL STREET, DIE!

David Howerton
Dec 27, 2012 1:11PM
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I want to talk to his UNION REP., GREAT CONTRACT
Someone (schmendric)
Dec 27, 2012 1:11PM
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These "perks" should also be termed "looting the store".  Pity the stockholders.  The board of directors of these companies certainly aren't on their side.
haastafer
Dec 27, 2012 1:01PM
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this kind of stuff makes me sick.. millions are without work,millions more work paycheck to paycheck and not to mention obama care coming. makes one wonder what really is news worthy ? for the record - i have NO g.e. products in my home.
demonslayar194
Dec 27, 2012 12:52PM
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GE  We bring good things to life (in China).
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