Compensation Policies
The Human Resources Committee of the Board has responsibility for determining the compensation amounts for each of the company’s senior executives, and maintaining oversight of the company’s executive compensation policies and programs. The Committee evaluates the overall effectiveness of our compensation philosophy and programs in supporting our business strategy and human resources objectives.
To achieve our objectives, the Committee oversees and we manage to a pay-for-performance philosophy based on the following guiding principles:
- Compensation should be incentive-driven with a focus on both short-term and long-term results;
- A significant portion of pay should be performance-based, with the portion varying in direct relation to an executive’s level of responsibility;
- Components of compensation should be linked to the drivers of sustainable stockholder value over the long-term; and
- Compensation should be tied to an evaluation of business results and individual performance.
Each of our senior executives has elements of our ESG priorities included in their individual objectives for the purposes of individual performance ratings, which influences each executive’s incentive compensation.
| What We Do | What We Don’t Do |
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Pay for performance
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Allow hedging or pledging of Whirlpool stock by executive officers, employees, or directors
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Use an independent compensation consultant that is solely engaged to provide executive compensation services to Whirlpool
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Provide excise tax gross-ups
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Cap short-term and long-term incentive award payouts at market-competitive levels
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Enter into employment contracts except as required by local law or prevailing local market practice
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Maintain robust stock ownership guidelines for our executives (7x salary multiple for CEO) |
Pay dividends or dividend equivalents on grants of any Performance Stock Units (“PSUs”) or Restricted Stock Units (“RSUs”) prior to vesting
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Subject all variable pay to a compensation recovery “claw-back”
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Reprice or reload stock options
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Have “double-trigger” change-in-control agreements
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Carefully manage risk in our compensation programs to protect against unintended outcomes
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Provide market-competitive perquisites deemed necessary to attract and retain top talent
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