General Electric Energy Business Pays $5.1 Million to New General Counsel Rachel Gonzalez
General Electric Co.’s energy business has reportedly paid more than $5.1 million to its new general counsel, Rachel Gonzalez, in 2023. This comes just a year after she was fired from the same role at Starbucks Corp.
Rachel Gonzalez, 54 years old, joined what will soon become GE Vernova Inc. in April 2023. Prior to her role at Starbucks, she had served as general counsel for the coffee chain from 2018 to 2022, receiving a significant severance package of nearly $12 million when her position was eliminated due to a leadership change.
In her new role at GE Vernova, Gonzalez received a base salary of $675,000, over $1 million in non-equity incentive plan compensation, and approximately $2.4 million in stock awards. She also earned around $950,000 in other compensation, primarily in the form of relocation and tax benefits.
GE Vernova is one of three standalone companies created through the break-up of General Electric, a complex process that involves navigating legal, logistical, and regulatory issues.
Providing further details on Gonzalez’s total compensation, GE Vernova disclosed that she was eligible to receive a base salary of $900,000 for the full year. Additionally, once the spin-off is complete, she will receive an annual cash bonus equal to 100% of her salary. The company has also awarded her equity awards valued at $3.5 million which will vest more quickly if the company’s separation from General Electric is not completed by December 31.
Gonzalez is also a board member at travel technology provider Sabre Corp. and serves as a director at video game maker Electronic Arts Inc. In the fiscal year 2022, she received total compensation of nearly $418,000 from Sabre, and in fiscal 2023, she earned almost $337,000 from Electronic Arts.
In a securities filing on February 16, vacation rental company Vacasa Inc. stated that Gonzalez resigned from a board position due to her obligations and time commitments as GE Vernova’s top lawyer.
GE Vernova’s executive leadership team will also include Amber Kagan, who will serve as chief compliance officer. Kagan, a former Morgan Lewis partner, has had a long tenure as an in-house lawyer at General Electric, most recently as the chief ethics and compliance officer and global head of labor and employment law.
According to a timeline provided by General Electric, once the spin-off of GE Vernova is complete this year, the parent company plans to transition by mid-2024 to becoming the aviation-focused GE Aerospace. In October 2023, GE Aerospace hired John “Jake” Phillips III as general counsel.
In 2022, GE HealthCare appointed Frank Jimenez as its general counsel, while Michael Holston has been general counsel for General Electric itself since 2018.
Analyst comment
Neutral news. As a result of the break-up of General Electric, GE Vernova Inc. pays its new general counsel, Rachel Gonzalez, $5.1 million. Gonzalez’s compensation includes a base salary, non-equity incentive plan compensation, stock awards, and other benefits. GE Vernova’s executive leadership team is being formed, and the parent company plans to transition to becoming GE Aerospace by mid-2024. The market is expected to remain stable with the reorganization of General Electric’s businesses.
