Hake will receive no bonus for year

Hake will receive no bonus for year
 
Date February 07, 2006
Section(s) Local News
Brief  
 
By PETER HUSSMANN

Editor

For the second year in a row, Maytag Chairman and CEO Ralph Hake will not receive a bonus due to the company’s poor performance.

In a filing with the Securities and Exchange Commission late Monday, Maytag‘s Compensation Committee announced that Hake “would receive no payout under the 2005 Incentive Compensation Plan because threshold levels of performance for fiscal 2005 were not achieved.”

In its earnings announcement last week, Maytag said that it lost $81.9 million in 2005 on net sales of $4.9 billion, up 3.8 percent from the $4.72 billion reported in 2004. Maytag reported a net loss of $9 million in 2004.

The SEC filing indicates that only Arthur Learmonth, the recently named acting president of Maytag Appliances, will receive a year end bonus. That decision was based on his previous work as head of the Maytag Services unit, which reported double-digit revenue gains for the year. Learmonth was named acting president of the Major Appliances division in November.

No other Maytag executive will receive a bonus for the year.

Each, however, stands to gain millions upon successful completion of Maytag‘s merger with Whirlpool. Proxy statements filed in connection with the buyout bid indicate Hake will receive compensation of $10 million with other executives sharing another $16.5 million. However, including long-term cash incentive awards, full vestment of stock options and performance units ,and those figures jump with Hake expected to receive approximately $20 million in total compensation.

The Antitrust Division of the U.S. Justice Department is currently reviewing Whirlpool’s $1.7 billion buyout offer. Both companies have said they will not complete the merger prior to Feb. 27, without Justice Department approval.

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