Fleetwood Enterprises’ new chief executive officer will make an annual salary of $873,000, but he could earn almost $2.2 million in bonuses each year based on his performance and the performance of the company as a whole, according to the Press Enterprise.
Elden Smith, who took command of the struggling Riverside, Calif.-based RV and manufactured home builder on March 8, will also get $563,000 worth of Fleetwood stock every six months, according to Securities and Exchange Commission filings.
The size of Smith’s salary, bonuses and stock options was based on the advice of a consultant who analyzed “companies of like size and nature and sales revenue,” said Ross Wiltzius, Fleetwood’s director of compensation and benefits.
Former chief executive officer Edward Caudill, who was ousted last week, was hired July 2002 at an annual salary of $675,000, according to previous Securities and Exchange Commission filings. He was making the same salary as Smith by the time he left.
Caudill’s bonus structure and stock option plan were the same, Wiltzius said.
Fleetwood has set a target bonus of $2.194 million for Smith, but he could earn much less if those goals are not met, or much more if they are exceeded.