General Electric is in dire need of a turnaround. It will pay its new CEO handsomely if he can pull one off.

Larry Culp, named GE chairman and CEO on Monday, will receive a compensation package of up to $21 million a year in salary, bonuses and stock for the next four years. Beginning next year, GE will annually give Culp a salary of $2.5 million, a bonus of about $3.75 million and equity awards valued at $15 million.

But that's not the best part for Culp: If the stock rises more than 50 percent, he also gets a payday of about $47 million. And he gets more money if it rises further.

"If we get up 150 percent, we're talking $300 million," David Faber, who reported details of the contract, noted on CNBC's "Squawk on the Street" on Friday.

The one-time pay out at the end of the third quarter in 2022 is based on performance metrics for Culp, marked by increases in GE stock.

If the company's stock rises 50 percent, Culp gets 2.5 million GE shares at about $18.60 a share – or about $47 million. If the company's stock rises 150 percent, Culp gets 7.5 million shares at $31 a share – or about $233 million. Added to his annual pay and awards, Culp could bring in as much as $317 million.