General Electric Gender Discrimination Lawsuit

May 31, 2007 — -- A top female lawyer for General Electric Co. was demoted and has subsequently filed a $500 million gender discrimination lawsuit against her employer -- in a suit that seeks to change company pay and promotional practices.

But a company spokesman "strongly" denied the allegations and said the corporation would defend its name in court.

The lawsuit, filed today in the U.S. District Court in Connecticut, accuses the corporation of paying female employees in entry level executive positions less money than their male counterparts and failing to promote the female executives at a comparable rate.

Lorene F. Schaefer is seeking class action certification from a judge on behalf of approximately 1,500 entry level female executives throughout the corporation.

Schaefer's court filings claim she was placed on administrative leave earlier this year to make room for another lawyer. In court papers she said she was told during a meeting with senior male executives that she was "not big enough" for her position and that one of her superiors wanted a "big time" general counsel. The Associated Press quoted her salary as $380,000 plus bonuses.

Schaefer joined GE as an employee in 1994, she said in court papers, and became an entry level executive in 1997.

"Although I have consistently received awards and recognition for outstanding legal work and leadership, I've been kept at the company's lower executive band level while my male general counsel peers have been promoted to the senior executive band level," Schaefer said in a statement. "I hope this lawsuit serves as the necessary catalyst for creating much needed and long overdue change at GE."

GE spokesman Gary Sheffer said the company would "defend against these claims in court."

"Ms. Schaefer's career with GE clearly illustrates the opportunities that the company provides to women, as she was given opportunities to move to progressively larger roles,'' Sheffer said in a statement. "GE works very hard to promote and ensure diversity within our culture. We have increased the number of women in senior executive positions in the past five years. There are more women in big jobs at GE than ever before."