JASPER, IN – Office furniture maker Kimball Intl Inc. announced that the Compensation Committee of the company’s board of directors has approved an across the board pay reduction plan for all salaried employees. The salary reductions will affect all U.S. employees and appropriate commensurate actions are being considered and implemented worldwide in accordance with local laws and practices in the company’s international operations.
Approved by the Committee was a reduction in compensation for Kimball CEO Jim Thyen, who will receive a 10% cut in annual base pay. The Company will also reduce base pay compensation for all Officers by 5%, as well as a 3% reduction for all other salaried personnel. It is estimated the pay reductions will total approximately $3 million in annual savings. The reductions will go into effect with pay periods beginning February 23 for Thyen and the Officers, and with pay periods beginning March 23 for all other personnel.
Kimball CEO Thyen noted, “We have previously avoided ‘across the board’ pay reductions because our long standing profit sharing bonus program makes Kimball’s compensation more ‘self adjusting’ than most other companies, and has already had the effect of reducing compensation, but prudent cash management in these economic times requires extraordinary action.”
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