Select Comfort CEO may skip pay
By Furniture Today Staff -- Furniture Today, March 2, 2008
Minneapolis — Select Comfort's CEO is giving up his title of chairman and also will voluntarily forgo his pay for the rest of the year unless the company's performance improves, according to the airbed manufacturer and retailer.
Select Comfort announced that its board has decided to separate the company's chairman and CEO roles, naming board member Ervin Shames chairman. McLaughlin, who had held the chairman's title since 2004, remains president and CEO.
"Today's decision is the result of the board's ongoing review of best practices with regard to corporate governance," said Shames, who thanked McLaughlin for his service.
"With this new structure," McLaughlin said, "I will now be able to devote all my energy to the leadership and management of this company, as well as entirely focus on driving our growth and profitability initiatives."
In a filing with the Securities and Exchange Commission, Select Comfort said it will pay a $100,000 annual retainer to the chairman, in addition to the usual $25,000 director's payment.
It said the board also accepted McLaughlin's proposal that he forgo his salary for the rest of 2008 until the company has achieved same-store sales growth of at least 1% in four consecutive weeks.
After several consecutive years of growth, same-store sales at company-owned stores declined 11% last year and total sales fell about 1%.
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