Winnebago Industries is reducing executive pay as a cost-saving measure in response to the COVID-19 outbreak.
Winnebago Industries President and CEO Michael Happe will reduce his salary by 25 percent for the remainder of the fiscal year and forgo his 2020 bonus. The board of directors will reduce their cash compensation by 25 percent for the remainder of the fiscal year, and the executive leadership team’s cash compensation will be materially reduced, as well.
Winnebago temporarily suspended most production March 23.
“The underlying fundamentals of our business are strong,” Happe said. “The company has a healthy balance sheet and liquidity, and these proactive measures will help us manage through this crisis while continuing to support our dealer partners and consumers. We remain disciplined in our approach to financial management and confident that we are taking the right actions to emerge from this crisis even stronger than before.”
Additional cost containment and financial management measures the company is taking include:
- Delaying certain capital expenses and reducing or eliminating non-critical business expenses.
- Implementing temporary hiring freezes in all locations for non-critical salaried positions.
- Postponing merit increases for salaried employees until the end of the fiscal year.
- Continually engaging with strategic banking partners regarding appropriate options relative to future financial liquidity.
- Engaging proactively with dealers and suppliers to better understand market conditions and consumer sentiment.
- Communicating with inventory finance entities on their support of the dealer community.
Winnebago Industries stated it had $123 million of cash available on its balance sheet at the end of the second quarter of Fiscal Year 2020. The company said it also has access to a $193 million ABL credit facility.
As the health crisis has evolved, Winnebago Industries has focused its efforts on using its resources to provide support in overall relief efforts, especially in its local communities. To date, Winnebago Industries is producing medical masks and face shield parts and donating vital PPE materials. The Winnebago Industries Foundation provided funding to support COVID-19 response and recovery across its communities in Iowa, Indiana, Minnesota, Florida and Oregon, to address immediate needs such as hunger and childcare for healthcare workers and to plan for longer term impacts. The company remains engaged with community stakeholders and supports employee-initiated volunteer efforts.
“I want to recognize the hard work, flexibility and steadfast commitment our employees have shown to make these vital community support activities a reality,” Happe said. “I have never been prouder to lead our team as we all come together to help one another in these challenging times.”
