Immelt Spends His Cash Bonus on G.E. Stock

Jeffrey R. Immelt, the chief executive of General Electric, says he spent his whole 2013 cash bonus on G.E. stock.

Mr. Immelt bought about 105,000 shares on Monday for a little more than $2.6 million, according to a company filing.

“I am investing right alongside of you,” Mr. Immelt said in his annual letter, which is to be released later this month. A quote from the letter was provided by Seth Martin, a G.E. spokesman. “I have invested my entire bonus in G.E. stock. Like the rest of our leaders, I believe in G.E.”

Mr. Immelt’s purchase of his company’s stock represents one of the largest by a chief executive in the last year, and comes on top of the 40,000 shares he bought in January for about $1 million.

His latest investment represents a relatively small portion of the 1.9 million shares Mr. Immelt owns directly in G.E.

“Considering he’s been the C.E.O. for about a decade and been paid a lot of money, that’s not particularly impressive,” said Alan Johnson, head of the compensation consulting firm Johnson Associates, referring to Mr. Immelt’s new investment. “It’s a nice gesture, but it’s a gesture.”

Mr. Immelt ranked 20th on a list of the highest-paid chief executives in 2012 compiled by Equilar, an executive compensation data firm. His salary and bonus in 2012 totaled nearly $8 million, and he also earned a long-term performance award of $12 million.

Mr. Martin would not disclose Mr. Immelt’s bonus for 2013.

While Mr. Immelt may have spent his whole cash bonus on G.E. stock, he could still earn a stock award for 2013. He did not receive such an award in 2012.

G.E. stock has risen about 10 percent in the last year, and was trading at about $25.60 at midday on Tuesday.

Chief executives sometimes spend their own money on company stock as a way to shore up investor confidence.

In 2011, when Morgan Stanley’s stock had fallen to $20 a share, the bank’s chief executive, James P. Gorman, bought 100,000 shares. Mr. Gorman would ride his investment all the way down to $12 a share at one point in 2012.

That bet now looks like it may have paid off. Morgan Stanley’s stock is trading around $30, yielding a gain of about $1 million on paper for Mr. Gorman.