GE Chairman Gets $7.1-Million Book Advance

Jack Welch, one of corporate America’s most admired chieftains, is being paid a $7.1-million advance for a book due out next year, when he retires as chairman of General Electric Co. The advance, which Welch intends to donate to charity, is believed to be the largest ever paid for a nonfiction book. Time Warner Trade Publishing, a division of Time Warner Inc., beat three other publishing houses in a bidding war that ended this week. Publishing executives considered the advance to be high, but not unrealistic given the growing interest in business topics among American readers and the extraordinary stature of Welch, who has led a major transformation of GE in his 20 years as chairman. Time Warner Trade Publishing would have to sell about 1.6 million copies to make back its advance, which covers only North American rights. Overseas rights could fetch even more. HarperCollins, Doubleday Broadway and Simon & Schuster were other top bidders for the Welch book.