Huttig Building Products is cutting by 10% the annual base salaries of its headquarters and regional office employees effective Sept. 28, the building materials distributor reported in a filing with the Securities and Exchange Commission (SEC).
The move is part of the St. Louis-based company's cost containment initiatives, Huttig said. On Aug. 7, Huttig reported a net loss of $6 million in the second quarter, more than double the $2.5 million loss it incurred in the year-earlier period, as sales dropped 38.6% to $119.9 million from $195.4 million.
The 10% pay cuts apply to "certain employees, including each of its chief executive officers," Huttig's SEC filing said. The document didn't specify whether any employees besides five people it named were affected by the cuts, but Huttig President and CEO Jon Vrabely told ProSales in an interview on Sept. 28 that the cuts affect all headquarters employees and regional staff. That's as many as 10% of the copmany's 1,000 employees, he said.
Vrabely's salary was dropped to $400,000 from $360,000, while recently hired vice president and CFO Phil Keipp saw his salary trimmed to $225,000 from $250,000. The other three execs affected were: Greg Gurley, vice president for product management and marketing, $202,500 from $225,000; Brian Robinson, vice president and chief information officer, $179,550 from $199,500; and Richard Baltz, vice president for internal audit, to $171,000 from $190,000.
Huttig previously has responded to the slump in part by closing, consolidating , or selling 19 distribution centers since mid-2006. Two of them were sold in the first half of 2009, while a third--in Anchorage, Alaska--is to be closed in the fourth quarter of this year. Huttig also has reduced its workforce by approximately 1,200 since the middle of 2006 and had approximately 1,000 employees as of June 30.