The news was welcomed by GE stockholders, who long for the double-digit growth of the halcyon 1990s. Since 2001, net income growth has averaged just 6% a year. GE's stock, which peaked at $60 in late-2000, closed Friday at $36.75.

Left unaddressed at GE's powwow, however, are some simmering concerns about the company's recent acquisition spree and potentially related issues with executive compensation.

In the last year, GE has acquired several companies as part of its strategy to shed low-growth, capital-intensive businesses in favor of more promising industries that are growing faster than the broader economy. However, GE has paid premium prices to acquire businesses in areas such as water services and security systems. To wit:

As a GE shareholder, I hope all this acquisition activity boosts intrinsic value. But most acquisitions do not benefit stockholders, research shows. A common reason for disappointment is because the buyer overpays for expected revenue gains and cost savings that never materialize.

Time will tell whether these deals make sense. What we know today, however, is that GE's intangibles as a percentage of stockholders' equity is going up; this isn't surprising as a common type of intangible capital is accounting goodwill, which results when a buyer pays more than the seller's net worth.

At year-end 1995, soft assets were 39% of GE's book value; as of Sept. 30, that figure had climbed to 80%. The higher this ratio, the sketchier a firm's corporate net worth. In GE's case, if this trend persists there won't be any tangible book left in a few years!