Exhibit A--Ralph Scozzafava. Scozzafava took home $3.8 million last year in cash compensation not including $2.8 million through the company's incentive (welfare) plan. According to SEC filings, the board approved an increase in base salary for Scozzafava by 7% to $750,000 in 2008. They also increased his potential long term compensation award to 200-300% of his salary. We wonder how the board can justify such exorbitant compensation.
Scozzafava's incentive plan pay is based on free cash flow, return on invested capital and percentage of U.S market share. That means the company can lose $373.6 million in 2008 as sales decline 16.3% and the Scozz is richly rewarded. We congratulate the board for crafting such a plan, it may be the best product the company has introduced in years.
Exhibit B-- Broyhill President Jeff Cook $2 million
Exhibit C--Lane President Skipper Holliman $1.5 million
Exhibit D--Senior VP of HR Mary Seetman $1.2 million
Exhibit E--Senior VP and General Counsel Lynn Chipperfield $1.9 million
Furniture Brands will file a Proxy Statement by March 31 on executive compensation and we'll keep you posted. Our prediction: the ship is sinking and the looting is only getting started.
The real question--where's the outrage?
The real question--where's the outrage?
I don't understand where you get Lynn Chipperfield from. He was forced from the company over a year ago. The Senior VP and General Counsel is Jon Botsford.
ReplyDeleteYou're correct. However, the pay of Lynn Chipperfield regardless of when he vacated the post (early 2008) is also correct. It is the opinion of our organization that the pay across management at Furniture Brands is unacceptable given current performance.
ReplyDeleteI understand and I also agree with you. I would hope that someone will finally start to investigate this company. I am a former employee of the corporate office and I saw what was going on. The people running the company are from bubble gum (Scozzafava) to sandwiches (Issac, the controller). There is not one person in the executive office that knows anything about the furniture industry.
ReplyDeleteWe believe there is very little scrutiny on this and many other issues in the industry. We just started this blog a few days ago so please stay tuned.
ReplyDeleteI am outraged and was laied off also after many years of service. I have contacted my senators and the the president. more of should do this and see what happens. these execs are stealing from us what most of us have work our whole lives for.
ReplyDeleteWe are working on an open letter to the Board of Directors. We will publish on the site when it has been completed.
ReplyDeleteThe investors are voting with their feet and selling shares. Retailers are voting with their wallets and bringing in other lines like many of the Thomasville stores. This is a death spiral unless there is a major re-structuring of management and the board.