General Electric Essays

General Electric Essays General Electric Essay General Electric Essay The firm operates In four primary business segments; Energy, Technology Infrastructure, Capital Finance and Consumer / Industrial. Headquartered In Fairfield, CT, General Electric has grown over the past 122 years into a financial behemoth realizing revenue in excess of $146 billion in 2013. Throughout its existence, General Electric has demonstrated an inconsistent record in terms of ethical governance and responsible business practices. Leek many of its peers, the firm endured a number of scandals, particularly in the late uses and Into the sasss. In response to these Issues and In accordance with the Serbians-Solely Act passed In 2002, General Electric has transformed Its business practices and Is now recognized as one of the more respected players in the world of corporate governance and honorable business practices. Contemporary business practices exercised by the firm have earned numerous accolades including: #6 Best Global Brand (Interbrain) #10 Most Admired Company (Fortune) #180 Greenest Company (Newsweek) To understand how this corporate evolution occurred, we need to understand the organizational structure and managerial best practices utilized by General Electric and the nature of the legislation that necessitated this institutional change. What is Serbians-Solely? The Serbians-Solely Act of 2002 (SOX) is a federal law that mandated new or enhanced standards for all U. S. Public company boards, management and public accounting firms. Drafted In response too number of high-profile corporate scandals that occurred In the late SASS and early sasss by LLC_S_ Senator Paul Serbians and U. S. Representative Michael Solely: the legislation imposed several powerful exchanges designed to curb corporate malfeasance and to protect investors. The most significant of these mechanisms included indivi dual certification of corporate financial statements by top management, increased penalties for fraudulent activity and the separation of auditing and consulting functions in outside business agencies. Mum. Sallow. Com) The overarching effect of this legislation was the increased scrutiny of flannel statements submitted by publicly traded companies and growing corporate auditing expenditures. (Sadism,2007) Board Composition: structure and governance General Electric has been a progressive company in terms of Board composition and governance. (see composition matrix- attached)For decades, the company has demonstrated a desire to promote diversity In governance from three primary perspectives: gender, race and age. : In Dalton, General Electric had historically satisfied many of the obligations outlined in the Serbians Solely legislation well in advance of its passage including listing the definition of individual committees and the number of committee meetings. (General Electric Annual Report 2000) One potential conflict that exists with the General Electric governance strategy is the ambition of President / CEO and Chairman roles. This is a practice that the company has exercised since Ralph Cordoned combined these responsibilities In 1958 challenge that exists within the Board structure of General Electric is the lack of term limits. Nominated individuals are approved annually through a majority of votes present and may continue to serve indefinitely. This issue was debated recently when shareholders proposed a 15 year term limit of Board service along with separation of the CEO / Board Chair role. The measure was defeated in a lopsided vote held during the companys April 2013 Board meeting. (Casts, 2013) re-sox (2000) * no mission or governance statement listed post-sox (2003) The role of Gees Board of Directors is clear: to oversee how management serves the long-term interests or shareholders and other stakeholders. Today (2013) The primary role of Gees Board of Directors is to oversee how management serves the interests of shareholders and other stakeholders. Board Size 19 15 17 Inside vs.. Outside # of Committees 7 5 # of Meetings 10 13 14 Audit Committee Consisted of outside directors. Held 5 meetings in 2000. Reviewed the activities and independence of Gees independent auditors as well as the firms financial reporting recesses. Composed of independent directors. Held 11 meetings in 2003. To review the activities and independence of Gees external auditors the activities of Gees internal audit staff Also reviewed Gees system of disclosure controls and procedures. Composed of independent directors. Held 12 meetings in 2013. Primary responsibilities include: selection of independent auditor, review the independent audit, oversee the firms financial reporting activities and accounting standards. Tenure unlimited Compensation Combination of cash stock. $75,000 annual base plus $2,000 per meeting . Compensation committee. Removed contingent service reward of 5,000 shares. Combination of cash, stock other. 250,000 base. Average compensation = $302,457 The moral of the story as it relates to Board structure and Governance within General Electric is that while the firm did work to shore up its regulatory and oversight positions post SOX; the company had exercised the basic principles outlined in the legislation for some time. Performance Metrics Executive General Electric has functioned for decades under the philosophy of hiring, motivating, rewarding and retaining its executive leaders through compensation. The many has maintained an executive compensation model that includes salary, bonuses and stock options as the vehicle to achieve this goal for decades. While the total compensation packages at the highest levels of leadership are not as lucrative as they once were General Electric has adapted its compensation policies in order to remain competitive and compliant in an evolving business environment. 2000- Jack Welch In the year 2000, Jack Welch stood without peer in the world of American business. Recently named Manager of the Century by Fortune Magazine, (Calvin, 1999) General Electric increased revenues to nearly $130 billion. During this year Mr.. Welch earned $16,700,000 in salary and bonus. In addition, Mr.. Welch was granted 3,000,000 stock options which became exercisable upon retirement as well as 850,000 restricted stock options. The later options were granted by the board in appreciation of 20 years of service to GE. Furthermore, Mr.. Welch was granted a split-dollar life insurance policy contingent upon execution of a personal consulting contract (up to 30 days annually) at the discretion of the acting CEO. Final terms of the consulting contract and retirement package are not listed, but the value is estimated to be north f $420 million. 2003 Jeffrey Melt Jeffrey Melt emerged as the new CEO of General Electric following a highly publicized succession process in 2001. Perhaps due to his relatively short tenure to this point, but more likely due to the passage of the Serbians-Solely Act; overall executive compensation was revised at General Electric in 2003. In addition to a more responsible base salary, executive bonuses and stock options were much more clearly outlined and defined in the 2003 proxy statement. While the Board Compensation Committee does state: We rely upon Judgment and not rigid deadlines or formulas or short-term changes in our stock price in determining the amount and mix of compensation elements for each executive officer official documents include an element of specificity not previously available to investors. Mr.. Melt was paid a $3,000,000 base salary and bonuses totaling $4,325,000 a 10% increase from the previous year. In addition, Mr.. Melt was granted 250,000 performance share units in lieu of stock options. This is the most significant change related to executive compensation policies that occurred at General Electric post SOX. Recognize the unique position of the GE CEO. The committee believes that the CEO of GE needs no retention compensation, and that his equity compensation should be focused entirely on performance and alignment with investors. This change in policy effectively linked 50% of the Coos equity compensation directly to the companys cash generation performance; the remaining 50% would only convert to shares if specific shareholder return metrics were met. In short; the better the performance of the firm the better the compensation for Mr.. Melt. Finally, select executives at GE (including Mr.. Melt) were granted 3-year performance incentive awards. These awards would be paid only upon achievement of unlisted specified goals related to: earnings per share, revenue growth, return on total capital and cumulative cash generated. 2013 Jeffrey Melt Today, the evolution of executive compensation continues at General Electric. The 2013 Proxy Report provides a thorough and defined description of all elements and metrics used to determine final executive compensation. Following essentially the same compensation model initiated in 2003, Jeffrey Melt realized total compensation (including projected pension value) of $20,592,769. Leadership, Ethics Firm Values General Electric is a perfect case study in the evolution of an American business. Formed in 1892 primarily as an electric company, the firm has grown into a global dynamo. Today the company operates in several areas including finance, appliances and power systems. This type of evolution and growth does not happen by accident, it is the result of visionary leadership a quality that has existed within GE for a century. Founded by one of this countrys greatest innovators, General Electric has embodied the vision of Thomas Edison since its inception. The company has dabbled, innovated and revolutionized a number of industries throughout its existence. This truth is a testament to the men that have lead the organization throughout the years. (see past leaders attached) More recently, present-day General Electric has been molded primarily by two individuals who utilized their personal skill to direct the company through a challenging time. Jack Welch (1980 2001) Jack Welch Joined GE in 1960 as a Junior chemical engineer. Early in his tenure, Welch considered leaving the organization citing a frustration with an overwhelming bureaucracy that existed within the firm. Welch was convinced to stay and worked his ay up the ranks becoming Chairman and CEO in 1980. Welch became one of the most successful executives in the history of the United States during his tenure, growing the value of the company by 4000%. He accomplished this by imposing leadership efficiency practices throughout the company. Welch promoted strong businesses by limiting bureaucratic inefficiencies, trimming inventory and closing factories. His governing philosophy at GE was that a company should either be number 1 or number 2 in a particular industry or it should get out of that business. Welch adopted Motorolas Six Sigma quality program in 1995 to further streamline operating efficiencies. In addition, Welch instituted a rigorous method of assessing organizational performance and leadership termed Session C. The goal of this organization. During Jack Wheels tenure, General Electric became wildly profitable and became recognized as the preeminent organization in terms of operating efficiency and profitability. Mr.. Wheels methods, while successful were generally autocratic and focused on two specific issues: profitability and legal compliance. Jeffrey Melt (2001 present) Jeff Melt was groomed to lead General Electric from a young age. Millets father worked for GE in the Aircraft Engines Division. After receiving his A. B. In Applied Mathematics from Dartmouth College, Melt earned an M. B. A. From Harvard. Jeffrey Melt formally Joined General Electric in 1982 and began his professional ascent. Following a public and high-profile transition; Melt was challenged with the difficult task of replacing legendary GE CEO Jack Welch in 2001. Melt was immediately dealt two unparalleled challenges upon assuming the position the terrorist attacks of September 1 1, 2001 and to a lesser extent the public backlash attached to the prominent accounting scandals that occurred at the turn of the century. Melt began to create an impact immediately, adopting a more people- oriented approach to management than the efficiency-minded approach that had governed GE for the preceding two decades. Melt launched a series of effectiveness-oriented measures that encouraged innovation and risk-taking. Melt also began to look to developing markets in search of opportunity. Finally, Jeffrey Melt moved Gees operational focus to areas not previously considered: concentration on long-term growth over short-term gains, infrastructure development with an emphasis on green energy and increased marketing efforts focused on social responsibility. The contrast between these two vastly different yet extremely effective leaders provides an interesting snapshot of the effects of the evolution in American business following the corporate scandals of the late sasss and early sasss. While General Electric was not directly attached to a major scandal during that era, the timing of Gees leadership transition was fortuitous. While there is certainly room for a chicken vs.. Egg debate regarding the change in managerial philosophy at GE; the change in leadership at the top of the company definitely provided an opportunity to shift course in the post-SOX business world. Corporate Sustainability Social Responsibility Similar to many traditional American manufacturing powers, General Electric did not exercise sustainable business practices for the bulk of its existence. This, of course, was not uncommon in American industry. However, at the turn of the century, the first mention of social responsibility appeared in a GE company document. Integrity: the Spirit and the Letter of Our Commitment was a comprehensive document outlining the companys policies related to privacy, supplier relationships, working with governments, environment, health and safety. The initial draft of this document was essentially a rule book seeking to achieve legal compliance in the various nations where General Electric conducted business. The following year, (2001) two share owner proposals sought to amend and bolster the Integrity statement Share Owner Proposal No. 2; which attempted to improve the quality of life for employees and their communities by allowing collective bargaining, eliminating discrimination intimidation and promoting free labor, as well as Share campaign initiated by the General Electric Company that downplayed the dangerous effects of PCs dumped in the Hudson river by the company. The GE Board of Directors voted against both proposals. The reality of the Boards actions demonstrates that the early years of General Electrics sustainability and social responsibility programs were based in superficial statements only. In 2003, General Electric launched an interactive, electronic version of its Annual Report. This new medium included a section devoted to the Citizenship initiatives active within the company. The two paragraph overview acknowledged the need for a modern corporation to practice environmental compliance, leadership in corporate provenance and high ethical standards. The document lists various social programs supported by the organization and its employees including nebulous philanthropic and volunteer efforts. While a step in the right direction, an outside observer may still question the level of commitment GE expressed to its sustainable programming. The strategy did not contain the measurable, quantifiable objectives required to effectively execute a large-scale sustainability program. (Epstein, 2003) Today, General Electric has created and maintains a robust, independent website dedicated to corporate sustainability. Www. Sustainability. Mom outlines Gees commitment to long-term sustainable business practices including: internal processes, (people, governance, compliance and health safety) sustainability initiatives (health, energy climate, water and natural resources) and progress (public policy, grassroots activism, lobbying, human rights and research). Most importantly, the site lists and outlines performance metrics used to govern thei r processes including the GRIP 63 Sustainability Reporting Guidelines. The end result of the GE sustainability program has been a complete remake of the GE brand identity.

Loanwords from 12+ Unexpected Languages

Loanwords from 12+ Unexpected Languages Loanwords from 12+ Unexpected Languages Loanwords from 12+ Unexpected Languages By Mark Nichol Language chauvinists in the United States who believe that English is being polluted by other tongues should pause to consider how few words in our language actually derive from Anglo-Saxon, the predecessor of Modern English. One survey determined that only one-fourth of the words in English come from its linguistic ancestors. That total is exceeded by words directly from Latin (including medical, scientific, and technical terms) and from Latin’s collective daughters, such as French and Italian: Each source accounts for about 28 percent of our vocabulary. Greek contributed another 5 percent, proper names are responsible for another 3 percent, and all other languages combined add up to less than 1 percent. But what a rich slice of the pie that last sliver is! Even though English already had a word for many of the concepts those foreign-born terms represent, the language is always generous when it comes to making room for synonyms, which often acquire distinct connotations. I’ve omitted examples from the usual suspects, but check out these terms adopted into English from less-obvious languages, language groups, and regions: 1. Afrikaans Contributions from the South African language descended from Dutch include apartheid (â€Å"apartness†), trek (a long journey, originally one on foot), and names of indigenous animals such as the aardvark (â€Å"earth pig†) and the meerkat (â€Å"lake cat†); scoff, from which English derived scarf (in the sense of â€Å"to wolf down†) and wildebeest (you figure it out) are from a forerunner of Afrikaans called Cape Dutch. 2. Czech Pistol is said to have derived from the Czech word pistala (with several diacritical marks omitted here), though the name of Pistoia, a city in Italy, may have been the inspiration. Howitzer comes from the word for a catapult. Robot, from the Czech word for drudgery, was introduced in a play. But don’t associate the Czechs exclusively with war and toil, they, not the Poles, as is widely believed, coined the dance name polka (â€Å"little half†). 3. Hungarian Coach, from kocsi, derived from the place name Kocs, is taken from Hungarian in both its noun and verb forms. Saber comes from szablya. The names for the dog breeds komondor, puli, and vizsla are all of Hungarian origin, as are the names for goulash and paprika. 4. Irish Galore comes from go leor (â€Å"til plenty†). Other borrowings from Irish include glen (â€Å"valley†), phony (fainne, â€Å"ring†), slew (sluagh, â€Å"a large number†), and whiskey (uisce beatha, â€Å"water of life†). Scots and Scottish Gaelic provided many more words, including the obvious bard, clan, and plaid and the unexpected pet and trousers. Of indeterminate Gaelic origin are brogue (the shoe, not the accent; that’s definitively from Irish), hubbub, and smidgen. 5. Malay This South Asian language has given enriched English with amok, bamboo, compound, gingham, gong, junk (boat), launch (both the noun meaning â€Å"boat† and the verb and noun referring to setting off), and paddy, and the animal names cassowary, cockatoo, gecko, orangutan, and siamang. 6. Maori This language from New Zealand gave us the animal names kiwi, mako (shark), moa, and tuatara. 7. Scandinavian Norwegian contributions include the geographical terms fjord and floe, and ski, plus slalom and telemark (from a place name), as well as the animal names brisling (a fish), krill (a relative of the shrimp), and lemming (a rodent). Swedish words used in English include ombudsman, smorgasbord (â€Å"sandwich table†), tungsten, and fartlek, the unfortunate name for a training technique for runners that has nothing to do with flatulence. These words borrowed into English cannot be traced to a particular Scandinavian language: cog, flense (to strip blubber), flounder, lug, maelstrom, midden (kitchen-waste heap), mink, nudge, rig, snug, spry, and wicker. Dozens more entered English from Old Norse over a thousand years ago, including such basics as anger, ball, and cake. 8. Tagalog The original language of the Philippines loaned us boondocks (bundok, â€Å"mountain,† or bunduk, â€Å"hinterland†). We also have Tagalog to thank for cooties (kuto, â€Å"head lice†). 9. Tamil The language originating in India has shared catamaran (â€Å"tie up wood†), cheroot (â€Å"roll,† or â€Å"rolled†), corundum (â€Å"ruby†), and pariah, plus the food names curry (â€Å"sauce†), mango, and mulligatawny (â€Å"black pepper† and â€Å"water†). Various languages of India besides the major players Tamil and Hindu also contributed atoll, bandicoot, bungalow, calico, mongoose, pajamas, polo, and verandah. 10. Ukrainian This Slavic language contributed steppe, plus the food names borscht (beet soup), kasha (porridge), and pierogi (stuffed dumpling). 11. Welsh Welsh, harsh looking but mellifluous, is the origin of coracle (boat), crag (rock), cwm (valley, related to English combe), and likely flannel. Its nearly extinct cousin Cornish gave us brill (mackerel), dolmen (stone tomb), menhir (standing stone) yes, men means â€Å"stone† and penguin (â€Å"white head†), which could alternatively have come from yet another Celtic language, Breton. 12. One- or Two-Hit Wonders Some other languages gave only one or two words to English, but we should be grateful for what we can get: Finnish: sauna Ilokano (related to many languages of the South Pacific): yo-yo Romanian: pastrami (a pastra, â€Å"to preserve†), though it may derive ultimately from Turkish or Greek Romani (Gypsy): pal (â€Å"friend,† â€Å"brother†; originally, like dozens of other English words, from Sanskrit) Sami (a group of indigenous languages from northern Scandinavia): tundra Serbo-Croatian: vampire and cravat (from Hrvat, the Croatians’ word for themselves) Slovak: dobro (the instrument, from its inventors, the Dopyera brothers Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:English Grammar 101: All You Need to Know20 Rules About Subject-Verb AgreementIf I Was vs. If I Were