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General Electric Co.'s iconic slogan "GE brings good things to life" didn't seem to hold up too well at the company's annual meeting Wednesday in Salt Lake City that was attended by 268 shareholders — unless criticism is a good thing.
Even before the 10 a.m. gathering convened, protesters from the left and right of the political spectrum converged outside the Salt Palace to criticize the company and Chairman Jeffrey Immelt, while also voicing support for two shareholder resolutions to be presented at the event.
A handful of protesters from PETA — People for the Ethical Treatment of Animals — showed up to support the group's resolution, which called on GE and GE Healthcare to disclose information about their use of animals in testing.
"We want GE to come clean about their use of animal testing, and we want them to stop if it isn't ethical," said Colleen Hatfield, a PETA member from Salt Lake City. "We believe that some of their practices are so cruel that they've been banned in other countries."
GE in its proxy statement acknowledged that animal testing takes place in such areas as developing products for the pharmaceutical industry but urged its shareholders to vote against PETA's proposal. GE said it adheres to the "highest standards of husbandry and ethical treatment" of animals."
Only 10 percent of GE shareholders voted in support of PETA's resolution.
Yet that was double the support received for a resolution sponsored by the National Center for Public Policy Research. The free-market, nonprofit think tank established in 1982 asked shareholders to require GE's board to admit that the success of the company's climate-change business strategy depends upon the whims of elected officials.
Tom Borelli, director of the NCPPR Free Enterprise Project, said GE is using the "Tony Soprano" approach to business," referring to the mobster character in the popular television program. GE "wants to use government to break the legs of the fossil-fuel industry to sell the products it wants."
The resolution was supported by a number of members of Utah's tea party movement, yet received support from only about 5 percent of GE shareholders.
GE retirees also were out before 10 a.m. carrying signs asking the company for a cost-of-living allowance for their pensions.
"We've had three COLAs in the past 13 years. They [GE] keep saying they won't give us automatic COLA, but we keep pressing them," said Kevin D. Mahar of Lynn, Mass. No action was taken on the informal request, but a retirees group expects to meet with management in the fall.
Immelt did not give any direct responses to questions, although in addressing the shareholders he spoke of the company's bright future in areas such as finance and infrastructure development.
The Fairfield, Conn.-based corporation met in Salt Lake City as a part of an effort to conduct annual gatherings in a different city each year to help draw attention to the diversity of its local operations.
"Last year we were in Houston, where we have our oil, [natural] gas and energy businesses," Anne Eisele, a GE spokeswoman said earlier this month. "This year it is our health-care businesses' turn."
GE Healthcare in 2005 entered into a $300 million joint venture with Intermountain Healthcare to develop a next-generation medical records system. Intermountain contributed one-third of the $300 million development cost; GE paid for the rest.
"That project is continuing, and the goal is for GE to have a product ready for market in 2012," said Intermountain spokesman Jason Burgess.
The joint venture is based in the Homer Warner Center for Infomatics Research Building on the Intermountain Medical Center campus in Murray.
Twitter: @Oberbeckbiz —
General Electric's 2010 financial highlights
Revenue • $84 billion
Operating profit • $14 billion
Earnings • $3.3 billion
U.S. employment • 134,000 —
GE in Utah
The corporate giant employs about 1,000 Utahns at GE Healthcare Surgery, GE Capital and other smaller units. GE Capital is a state-chartered industrial bank. GE Healthcare Surgery is one of seven business units operated by GE Healthcare. The surgical unit provides diagnostic monitoring and data management systems, as well as imaging instrumentation.