Werner fourth-quarter executive incentive plan approved

By Caroline Salls

Pittsburgh, Dec. 27 - Werner Holding Co. (DE), Inc. obtained court approval to implement an executive incentive plan for the fourth quarter of 2006, according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing on implementing the executive incentive plan for 2007 is scheduled for Jan. 18.

Executives eligible for the incentive plan will be identified by the company's chief executive officer as employees able to directly impact the company's performance, business initiatives and the course of its restructuring.

The executives will earn incentive payments tied to operating performance based on EBITDA.

In each quarter, if EBITDA exceeds projections by 110%, executives will earn a bonus of up to 20% of their base salary for that quarter.

If EBITDA is between 100% and 110% of the budget, executives will earn 90% of the bonus, and if EBITDA is less than 100% of projections, executives will earn 70% of the bonus.

In addition, eligible executives who sign a non-compete agreement will receive a $100,000 or $150,000 lump sum payment upon confirmation of a plan of reorganization or the sale of company assets.

If the company does not exit bankruptcy by June 30, 2007, the non-compete payment will be cut in half.

Werner, a Greenville, Pa., manufacturer and distributor of ladders, climbing equipment and ladder accessories, filed for bankruptcy on June 12, 2006. Its Chapter 11 case number is 06-10578.

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