HIGH POINT, N.C. – Home furniture giant Stanley Furniture has cut the salaries of two of its top executives and board of directors by 25 percent – citing a sales slump and production delays.
Beginning in 2017, company president and CEO Glenn Prillaman will earn $191,250 per year, down from $255,000, while the company’s principal financial officer Anita Wimmer will earn $112,500, down from $150,000. Board members will earn a salary of $22,500 and the board chairman will earn $26,250.
Net sales for the furniture manufacturer’s third quarter stand around $11 million – down nearly 20 percent from $13.8 million a year ago. Sales were affected negatively by delays in production related to a troubled Vietnam factory startup and Stanley’s partnership with Starwood Manufacturing Corp. Levels of production were negatively impacted by costs and delays regarding product quality.
“Our wholesale customers clearly see the difficulties we are experiencing getting our overseas operations with Starwood where we expect them to be in order to provide the level of product quality and service they deserve,” Prillaman said in the company’s regulatory filing meeting Monday, December 5.
Stanley Furniture's board adopted a rights agreement to protect it from being a target of a takeover.
Company officials expect the next quarter to be a difficult one for sales due to lack of sufficient inventory of newly introduced product. But Prillaman was hopeful.
“Our increasing backlog for new product demonstrates customer confidence in the company’s ability to overcome initial roadblocks to success with our differentiated overseas strategy.”
In addition, Stanley’s board adopted a rights agreement to protect it from being a target of a takeover.