NEW YORK – Lawyers for retired General Electric Co. (GE) chief executive Jack Welch and his estranged wife said Friday the couple had reached an agreement on the monthly support he will pay her while the couple thrash out how to divide his $220 million fortune.
Attorneys for both Welch and Jane Beasley Welch would not disclose the terms of the agreement. Welch was paying his wife $35,000 a month, or 2.4 percent of his after-tax income, but she called the sum "patently inadequate" for maintaining the posh lifestyle the two had enjoyed.
The average U.S. household took home about $3,500 in monthly income last year.
Welch's attorney, Samuel Schoonmaker, said that his client was pleased. "I can only speak for the people I know, but everybody's feeling good," he said. Attorneys for Jane Welch were not immediately available to comment.
The corporate titan sought to divorce Jane Welch after his affair with the editor of the Harvard Business Review was uncovered.
Court documents from the divorce detailing Welch's lavish perks from GE after leaving the company in September 2001 — such as free use of corporate aircraft and rent for a Manhattan apartment — forced the former company chieftain to pay for the services and facilities.
Schoonmaker said a date has not yet been set for proceeding with the final settlement. But earlier this week he told The New York Times they had offered Jane Welch "many multiples of $15 million" after reports said he had offered between $15 million to $20 million.
An affidavit filed by Welch this week revealed the handsome income and luxurious living of one of America's most high-profile corporate icons.
Before taxes and other liabilities, Welch's assets stand at $456.1 million. After liabilities his assets come to $219.7 million.
He rakes in roughly $2.1 million a month, with $618,687 coming from his company pension, $808,500 from dividends and interest and $1,500 from Social Security. He also makes $685,400 in consulting fees.
Welch shells out $366,114 a month in expenses, with $51,531 going for upkeep on his five residences that include a large estate in Connecticut and a Florida condo.
Country club dues total $5,480, while $8,982 pays for restaurant bills, groceries and wine. He spends $52,486 on gifts each month and keeps $2,917 on hand for pocket money.