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    Lorenzo Simonelli

    Chairman, President, and CEO at Baker Hughes Co
    Board
    Since July 2017
    Age
    51 years
    Education
    Graduated with a Business & Economics degree from Cardiff University in South Wales.
    Tenure
    Joined Baker Hughes in July 2017 as President and CEO, later assuming the role of Chairman in October 2017.

    Also at Baker Hughes Co

    AG
    Amerino Gatti
    EVP, Oilfield Services and Equipment
    GR
    Ganesh Ramaswamy
    EVP, Industrial & Energy Technology
    GM
    Georgia Magno
    Chief Legal Officer

    About

    Lorenzo Simonelli has established himself as a seasoned leader in the energy and industrial sectors, beginning his career with critical finance and leadership roles that laid the foundation for a transformative approach to corporate management.

    Before his tenure at Baker Hughes, he held significant executive positions, including leading GE Transportation and spearheading GE Oil & Gas as both Senior Vice President and CEO. These roles enabled him to hone his skills in operational excellence and strategic decision-making.

    At Baker Hughes, his comprehensive leadership role as Chairman, President, and CEO marks a period of strategic innovation and robust governance. His active participation in board-level responsibilities across other major global companies further underscores his commitment to driving sustainable business practices and operational growth.

    $BKR Performance Under Lorenzo Simonelli

    Past Roles

    OrganizationRoleDate RangeDetails
    General Electric (GE) Senior Vice President, GE and President & CEO, GE Oil & Gas October 2013 - July 2017 Served as both Senior Vice President and CEO of GE Oil & Gas.
    General Electric (GE) President & CEO, GE Transportation July 2008 - October 2013 Headed GE Transportation as its President & CEO.
    General Electric (GE) Various Finance and Leadership Roles 1994 - 2008 Held multiple positions of increasing responsibility in finance and leadership at GE.

    External Roles

    OrganizationRoleDate Range
    Iveco Group N.V. Board Member N/A

    Fixed Compensation

    Data from  FY 2023
    Component NameAmountPayment ScheduleAdditional Details
    Base Salary$1,620,000 AnnualFixed annual salary.
    Life Insurance & AD&D Coverage$3,240,000 Annual Effective CoverageCoverage equals 2× base salary.
    Long-Term Disability Program$972,000 annually Annually (if qualifying disability)Provides 60% income replacement benefit.
    Universal Life Insurance - Executive Life Policy$3,374,616 Per policy termsCoverage initiated at $3M, increasing by 4% per annum (since 2020).
    Universal Life Insurance - Leadership Life Policy$5,475,600 Per policy termsCoverage equals 2× (base salary + most recent bonus).

    Performance Compensation

    Data from  FY 2023

    Short-Term Incentive Plan Bonus

    MetricThresholdTargetMaximumWeightingActualPayout Percentage
    Revenue$23.5B $24.6B $26.5B 10%$25.5B 150%
    Adjusted EBITDA$3.4B $3.65B $3.95B 25%$3.76B 140%
    Free Cash Flow (FCF)$1.25B $1.5B $1.8B 35%$2.05B 200% (capped)

    Weighted Financial Metrics Payout: 120%

    ComponentWeightingAchievement
    Strategic Blueprint Priorities30%20%

    Overall Bonus Payout: 140% of target

    Bonus Amounts:

    • Target Bonus: $2,754,000
    • Actual Bonus: $3,855,600

    Performance Share Units (PSUs)

    DetailValue
    Performance MetricsFCF Conversion, ROIC, TSR
    Payout StructureThreshold/Target/Maximum (Max = 225% of target)
    Grant DateJanuary 24, 2023
    Grant Date Fair Value$7,483,559
    Number of Units228,855 PSUs
    Vesting ScheduleCliff vest after 3 years if performance criteria met

    Final Cash-Based Transformation Incentive Award

    DetailValue
    Adjusted EBITDA% Improvement3.4%; Payout Multiple: 86%; Weighted: 30.1%
    Adjusted EBITDA% Cumulative Average14%; Payout Multiple: 63.83%; Weighted: 22.34%
    Total Weighted Payout (Financial Component)52.44%
    Strategic Component Achievement30%
    Overall Payout82.44%
    Target Award$3,000,000
    Actual Award$2,473,247
    VestingVested on December 31, 2023

    Accelerated Vesting of RSUs/PSUs in Certain Scenarios

    DetailValue
    RSU Grant DateJanuary 24, 2023
    RSU Grant Date Fair Value$4,599,986 for 152,570 RSUs
    RSU Vesting SchedulePro rata vesting over 3 years
    PSU VestingCliff vesting after 3 years (subject to performance conditions)
    Accelerated Vesting ConditionsChange in control and involuntary termination trigger immediate vesting
    NoteSpecific performance thresholds for accelerated vesting not detailed