GE Aerospace signs Larry Culp to stay as CEO through 2027

GE Aerospace has extended its employment contract with CEO Larry Culp more than three years, including a pay raise that could make him the highest-paid executive in Greater Cincinnati.

With Culp’s contract set to expire on Aug. 17, the Evendale-based aircraft engine manufacturer inked a deal to keep him through the end of 2027. Under the new deal, Culp will be paid more than $21 million in 2025, including a $2 million base salary, a bonus worth as much as $4 million and stock-based compensation worth $15.3 million.

Culp reportedly turned down an offer to take over as CEO of aircraft-manufacturer and defense contractor Boeing, according to a June report by the Wall Street Journal.

Additional stock-based compensation has the potential to increase Culp’s pay even higher. On Monday, Culp was given a one-time equity performance award that allows him to earn as much as nearly 466,000 shares over the next four years based on financial targets the company would need to achieve.

Last year, Culp was paid $13.7 million, according to the Associated Press' methodology for executive compensation that excludes pension value changes.

By comparison, here's what CEOs of other Greater Cincinnati publicly-traded Fortune 500 companies earned last year:

• Jon Moeller, $21.7 million at Procter & Gamble.
• Rodney McMullen, $15.7 million at Kroger.
• Craig and Carl Lindner III, $9.9 million and $9.8 million at American Financial Group.
• Timothy Spence, $9.4 million at Fifth Third.
• Steven Johnston, $8.4 million at Cincinnati Financial.
• Todd Schneider, $7.6 million at Cintas.

In its disclosure of the contract, GE Aerospace gave Culp high marks for seeing General Electric through a tumultuous restructuring since he took the helm in 2018.

Originally the CEO of General Electric, Culp announced in 2021 the company would break into three separate companies where GE would spin off its health and energy businesses into GE HealthCare and GE Vernova and keep its lucrative aerospace division. Upon completion of the final divestiture this spring, General Electric assumed the GE Aerospace name and officially changed its headquarters from Boston to Evendale.

The company also noted its stock has performed well under Culp. Shares are up more than 50% so far this year. Still trading under the “GE” ticker symbol, shares closed Monday at $158.97.

“The board considered the best interests of shareholders, the significant value creation under Mr. Culp’s leadership since he became chairman and chief executive officer in 2018 and the benefits of securing his continued leadership for the company, among other factors,” the company said in a statement.