In a noteworthy turn of events, General Electric Co.‘s energy unit has paid over $5.1 million to its fresh-faced general counsel, Rachel Gonzalez, just a year after she was dismissed from the same position at Starbucks Corp. After a leadership change at Starbucks in 2022, Gonzalez left the company with a severance package close to $12 million.
Gonzalez joined GE Vernova Inc., set to be a standalone company created from Boston-based GE, in April 2023. During this period, she received $675,000 in base pay, over $1 million in non-equity incentive plan compensation, and approximately $2.4 million in stock awards. Gonzalez also earned roughly $950,000 in other compensation, which came largely in the form of relocation and tax benefits.
The breakup of Boston-based GE into three standalone entities – including GE Vernova – is a complex process that requires numerous advisers to navigate the various operational, legal, and regulatory hurdles. This meticulous process is expected to culminate with the separation of GE Vernova by the second quarter of this year.
GE Vernova’s legal advising team includes leading firms such as Paul, Weiss, Rifkind, Wharton & Garrison LLP; DLA Piper; Jones Day; Mayer Brown; and Proskauer Rose. The team’s mandate is to ensure a smooth transition during the company’s separation from GE.
Rachel Gonzalez brings her experience from various leadership roles to GE Vernova. Meanwhile, the company’s executive leadership team is set to include chief compliance officer Amber Kagan, a long-time lawyer at GE and former Morgan Lewis partner. Efficiency in corporate governance is vital during this transition phase, and with the spin-off expected to be completed this year, it will be intriguing to see how Gonzalez and her team steer this process.
Board roles are becoming increasingly popular among corporate lawyers, and Gonzalez is no stranger to this domain. She is currently a board member at Sabre Corp. where she previously served as general counsel. Additionally, she is a director at video game creator Electronic Arts Inc. This amalgamation of her legal expertise and leadership experience will undeniably bolster GE Vernova’s strategic competencies in this transitional phase.