* Shareholders question stock performance, exec pay

* Immelt asked why he defended payout a month prior to cut

* CFO says stock performance "disappointing" (Recasts, adds shareholder comment throughout)

By Scott Malone

ORLANDO, Fla., April 22 (Reuters) - General Electric Co (GE.N: Quote, Profile, Research) Chief Executive Jeff Immelt faced a roomful of irate shareholders on Wednesday, many of whom blasted him for the decision to cut the dividend by 68 percent.

Several retirees and shareholders criticized Immelt, 53, for saying as late as January that the largest U.S. conglomerate would stand by its 2009 dividend plan. In February, GE cut its dividend effective in the second half of the year.

"By Mr. Immelt cutting the dividend by two-thirds, it hits the retirees who can no longer afford to live the lifestyle they are used to," said Jack Richards, 68, a Fort Lauderdale resident who was in a crowd of several dozen GE retirees picketing outside the meeting. "I can't afford to do the things I used to do. I've cut back on travel; I can't go back to visit my son in Boston."

Immelt said the world's largest maker of jet engines and electricity-producing turbines had to change course in the face of a rapidly deteriorating economy, which is taking a heavy toll on its GE Capital finance arm. The dividend cut will save GE about $9 billion a year, GE said.

"The world got worse," Immelt said. He said that when the Federal Reserve had announced it would be evaluating the stability of the U.S. banks: "We thought it was important that we had extra safety so we could pass all the tests."