Neutron Jack to pay for GE perks

HIS retirement perks included a luxurious flat in Manhattan, free tickets to top sports events including the US Open tennis tournament, a box at the New York opera, use of a Boeing 737 jet and membership of Augusta National, the exclusive golf club which hosts the Masters.

But on Monday former General Electric chief executive Jack Welch bowed to public pressure and agreed to start paying more than £2m a year for the benefits, which he was due to receive free for life.

The legendary tycoon, known as Neutron Jack for his tough manner, says he wants to save GE from public embarrassment at a time 'when public confidence and trust have been shaken'. Too late, many say.

Welch retired last year after 21 years at the top. but his lavish benefits only came to light in court papers two weeks ago when his wife Jane filed for divorce. This followed a minor scandal last year when the editor of the stuffy Harvard Business Review, Suzy Wetlaufer, went to interview Welch about his retirement and the pair began an affair.

America's Securities and Exchange Commission has begun a probe into why GE did not disclose the perks in regulatory filings.

The SEC is also probing claims that industrial group Tyco made hefty loans to staff which were then written off on the orders of its ex-boss, Dennis Kozlowski. Broker Merrill Lynch found 'no evidence' of a former analyst trading improper gifts with Kozlowski.