Maytag CEO sees salary cut

Maytag CEO sees salary cut
Date March 25, 2004
Section(s) Local News

By PETER HUSSMANN

Editor

Maytag Chairman and CEO Ralph Hake saw his base salary increase by $50,000 last year, but his overall salary dropped by nearly $600,000.

The salary figures were released as part of documents filed with the Securites and Exchange Commission in advance of the corporation’s annual meeting set for May 13 in Newton.

Hake’s base salary jumped from $800,000 to $850,000 in 2003, representing a 6.25 percent increase, the SEC document states. He did not, however, receive any incentive payments for meeting financial goals for the corporation last year.

In 2002, the first full year of his employment with Maytag, Hake received $800,000 in base salary, $800,000 in annual variable incentive and $103,000 in long-term incentives, bringing total compensation to approximately $1.7 million.

With his new base salary and long-term incentives, Hake’s overall compensation in 2003 dropped to $1.13 million.

Hake’s annual incentive pay is based on the company’s performance. According to the SEC report filed on Monday, “Maytag did not reach the threshold level of financial performance in 2003, but did fulfill many of its strategic objectives.”

In granting Hake’s base salary increase last year, the compensation committee of Maytag’s board of directors said it arrived at the rate by considering his annual base salary compared to CEO compensations in other industrial companies, his performance and his strategic actions and plans for 2003 and beyond.

“Based strictly on Maytag’s performance against the financial goals approved by the compensation committee and the board for the CEO at the beginning of 2003, Mr. Hake was not awarded any annual variable incentive compensation,” the report states.

The SEC documents also list the salaries for several other top executives including Maytag Appliance Division President Bill Beer.

Beer’s base salary in 2003 jumped from $328,000 to approximately $350,000. His annual incentive payment dropped from $213,000 in 2002 to $166,000 last year. His total compensation for the year was approximately $600,000, the SEC report states.

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2 Responses to “Maytag CEO sees salary cut”

  1. Guest Says:

    as-94783-sa

    Very interesting article

  2. paul_knightly Says:

    very insightful read, thankyou.

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