http://www.timesunion.com/default/article/28-3M-deal-eases-ouster-from-GE-3758854.php
SCHENECTADY — The departure of John Krenicki, the man who oversaw General Electric Co.'s energy infrastructure operations in Schenectady and elsewhere, won't come cheap.
In new regulatory filings first reported Thursday by The Wall Street Journal, Fairfield, Conn.-based GE revealed that the 50-year-old Krenicki will be paid $89,000 a month, or about $1 million a year, until he turns 60, when his regular pension will kick in.
The $10 million payment was described as a "retirement allowance" in a filing with the U.S. Securities and Exchange Commission.
In return, Krenicki has agreed not to join a competitor for the next three years.
Krenicki spent 29 years at GE but is leaving as the company restructures its energy infrastructure business, which he headed, by the end of the year. The business is being separated into three separate units, with the largest, Power and Water, to be based in Schenectady. Energy Infrastructure had been based in Atlanta, but the move returns decision-making power here, with Senior Vice President and Energy CEO Steve Bolze reporting directly to GE Chairman and CEO Jeffrey Immelt.
Executive compensation consultant Mark Reilly of Verisight Inc. told the Journal that Krenicki's package, which also includes a bonus worth at least $2.9 million, plus stock options originally set to vest between now and the end of 2014, is worth an estimated $28.3 million.
Krenicki's realized compensation totaled $6,795,069 in 2011, according to regulatory filings.
Krenicki will join private-equity firm Clayton, Dubilier & Rice LLC as a senior operating partner in January. There was no word on how much he will be paid there.
In Schenectady, local union officials weren't too happy with the news of Krenicki's payout.
"I think it's obscene," said Jose Fernandez, the business agent for IUE-CWA Local 301. "Our membership has made sacrifices to reduce costs and keep jobs here. I'm very disappointed."
Fernandez joined the company in 1973, when he was 17 years old, giving him 39 years of service with the company, 10 more, he pointed out, than Krenicki.
"It's a good company, don't get me wrong," Fernandez added. But, "they always preach that we're on one team. We must have separate locker rooms."