GE Pays Executive $89k Per Month in Exchange for Non-Compete Agreement
Posted on Jan 01, 2016
A vice chairman of General Electric, John Krenicki, has signed a non-compete agreement with his employer that will allow him to collect $89,000 per month from the company through the year 2022. Krenicki is retiring from his position at GE at the end of 2012. In exchange for the compensation he will receive under the non-compete agreement, Krenicki has agreed not to work for any competitor of GE anywhere in the world for the next three years.
Fortunately for Krenicki, he will be able to work for companies that are not competitors of GE. He recently announced that he has accepted a position working as a senior operating partner at Clayton, Dubilier & Rice, a private equity company. He will begin serving in that position, which does not violate his non-compete agreement with GE, in January of 2013.
While this particular non-compete agreement appears to work in favor of the employee, Krenicki, it could potentially harm him if he were to lose his future job. He would then be barred from working in his chosen field for any of GE’s competitors for the remainder of the term of the agreement. For this reason, it is generally considered that despite the large payout, non-compete agreements work in favor of the employer more than the employee.
Krenicki is just another in a long line of corporate executives to receive large payouts in exchange for signing non-compete agreements in recent years. In 2009, H. Edward Hanway received $110 million when he left his role as CEO of insurance giant Cigna. Also in 2009, former Bank of America CEO Ken Lewis received a severance package valued at $83 million.
For more information about non-compete agreements, contact a New York non-compete agreement attorney today at (888) 497-3410 for a consultation.