Westinghouse seeks incentives
Source:
Eagle Staff Writer
Written by:
By Caleb Harshberger
Published:
October 7, 2017
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CRANBERRY — Westinghouse Electric has requested approval to offer $8.4 million in bonuses to top executives and select employees to incentivize their performance as the company seeks to meet cost-saving goals and safety standards.

The Cranberry-based company filed the request in bankruptcy court Wednesday, outlining a Key Employee Incentive Program that would serve to incentivize and retain 26 select employees and executives. Awards will range from $4.2 million to $8.4 million depending on whether certain company financial goals and safety standards are met.

Employees eligible for bonuses were chosen based on the importance of their work and the degree to which the filing of bankruptcy affected their responsibilities, the company said in the filing.

The company is hoping to save around $147 million, primarily through restructuring and other “cost saving initiatives” and is hoping that the bonuses will motivate key employees to work toward this goal.

Westinghouse also requested approval to move forward with its previous decision raise the salaries of two top executives: President and CEO Jose Gutierrez and CFO Dan Sumner.

The company voted in June to adjust Gutierrez’s annual salary from $627,000 to $1 million.

The company promoted Gutierrez from Senior Vice President of Global Nuclear Business to President and CEO in June, with the company already several months into the bankruptcy proceedings.

“Mr. Gutierrez’s current salary, however, is not reflective of his role as CEO and is well below that of his industry peers,” the filing read. A compensation consultant hired by the company estimated his salary fell 39 percent below the market median.

The company also is voted to raise the salary of Sumner from $234,000 to $375,000.

It was estimated to be 53 percent below market median.

Even with adjustments both men will remain slightly below the median.

Westinghouse declared bankruptcy last spring and announced last month that they expect to lay off 1,500 employees before the end of March.

They are currently accepting bids for a majority stake in the company.