Compensation Philosophy & Policies
Whirlpool Corporation is dedicated to achieving global leadership in all of our product categories and to always delivering superior shareholder value. To achieve our objectives, we manage a pay-for-performance compensation philosophy based upon 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 shareholder value over the long-term.
- Compensation should be tied to both business results and individual performance.
Each member of our Executive Committee has elements of our ESG priorities included in their individual objectives for the purposes of individual performance ratings, which influence each executive’s incentive compensation. We reinforce emerging best practices and avoid those considered poor pay practices:
Overview of 2021 Executive Salary & Incentive Compensation Elements
|Base Salary||Cash||Fixed component based on responsibility, experience
and individual performance
|Short-Term Incentives||Annual Performance Cash Award||Performance-based variable cash incentive to reward for achieving annual financial and individual performance goals||
Ongoing EBIT (50%)
Free Cash Flow (50%)
+/– 50% Modifier for Individual Performance Results
|Long-Term Incentives||Performance Stock Units (70%)||Motivate and reward employees for the achievement of company financial and strategic performance over a preset three-year period beginning January 1, and promote retention||Cumulative Ongoing Earnings Per Share (50%)
|Provide incentive for long-term stock price appreciation
and promote retention
|Stock price appreciation|