- General Electric Co Chief Executive Jeff Immelt has waived his right to a bonus and performance-based pay that would have netted him more than $12 million in cash, the Financial Times said, citing people familiar with the company's plans.

The decision was approved by GE's board this month.

Immelt will continue to earn performance-share units, which may be converted into GE stock in five years if the group achieves certain goals on its cash and stock return, the paper quoted its sources as saying.

The Fairfield, Connecticut-based company reported a 44 percent drop in fourth-quarter profit, hurt mainly by weakness at its finance arm GE Capital.

Based on how GE fared in the last three years, Immelt was entitled to a long-term performance cash award of almost $12 million, the paper said. He also stood to get an annual bonus, which was worth $5.8 million in 2007.

The GE board agreed to keep Immelt's annual salary at $3.3 million, the paper said, citing its sources.

GE could not be immediately reached for comment by Reuters.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; editing by John Stonestreet)