GE 2002 Annual Report Download - page 41
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Please find page 41 of the 2002 GE annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.GOVERNANCE
“The company’s approach to leadership in corporate governance
this past year was executed in true GE fashion — with extraordinary
vision, energy and commitment to lead rather than follow. It was
a privilege to be a part of an unquestioned collective commitment
to be the standard bearer in this area.”—ANDREA JUNG
“Leadership is a way of life at GE, and that includes leadership
in corporate governance. Management and the board moved
quickly and decisively across a broad front in seeking to achieve
that objective.”—RALPH LARSEN
40 GE 2002 ANNUAL REPORT
Sound principles of corporate governance are critical to obtaining and
retaining the trust of investors
—
and to achieving GE’s overarching goal of
performance with integrity. They are also vital in securing respect from
employees, recruits, customers, suppliers, GE communities, government
officials and the public at large.
In 2002, our Board of Directors made changes in
corporate governance designed to strengthen its
oversight of management and to serve the long-term
interests of share owners, employees and other
stakeholders.
Some basic ideas helped shape these changes:
we should communicate externally the way we run GE
internally; we should satisfy the spirit, not just the
letter, of the new requirements; we should act promptly
to implement changes without waiting for formal effec-
tive dates that may be many months in the future.
At the core of corporate governance, of course,
is the role of the board in overseeing how manage-
ment serves the long-term interests of share owners
and other stakeholders. An active, informed, inde-
pendent and involved board is essential for ensuring
GE’s integrity, transparency and long-term strength.
As a result of the 2002 changes, 11 of GE’s 17 directors
are “independent” under a strict definition, with a
goal of two-thirds.