Business
Herman Miller Makes Temporary Business Adjustments in Response to Impact of COVID-19
ZEELAND, Mich., April 3, 2020 /PRNewswire/ -- Herman Miller, Inc. (NASDAQ: MLHR), the global designer and furniture manufacturer, announced today a set of
About this update from Millerknoll, Inc.
[{"type":"text","content":"ZEELAND, Mich., April 3, 2020 /PRNewswire/ -- Herman Miller, Inc. (NASDAQ: MLHR), the global designer and furniture manufacturer, announced today a set of actions throughout its global operations in response to the uncertain economic outlook resulting from the COVID-19 pandemic.\n\"Since the onset of the COVID-19 pandemic, we've been carefully considering the right things to do for our people and our company to ensure we have both a healthy employee base and business when we emerge from these uncertain times,\" said Andi Owen, President and CEO of Herman Miller. \"Just as we entered this crisis in a strong financial position, we are taking immediate actions to reduce expenses and manage liquidity so we can maintain strong financial footing on the other side of it.\"\nHerman Miller is implementing a range of actions aimed at temporarily reducing costs and preserving liquidity. These actions include a 10% reduction in cash compensation for the majority of the company's salaried workforce. Additionally, the company is immediately suspending certain employer-paid retirement contributions and will suspend previously planned compensation increases and cash incentive bonus programs for the upcoming fiscal year ending May 2021. The company will continue to evaluate further ways to manage costs in line with reduced revenue levels.\nIn addition to the 10% reduction in pay, Herman Miller's CEO and its executive leadership team will defer additional levels of salary for a minimum of six months to further preserve cash flow in the near-term. This will include an incremental salary deferral of 50% for the Chief Executive Officer, and 15% for the rest of the leadership team.\nThe company is also announcing the postponement of its upcoming quarterly cash dividend, which was declared on January 16, 2020, and was to be paid on April 15, 2020, to shareholders of record on February 29, 2020. Herman Miller intends for this dividend to be paid to the original shareholders of record at a future date to be determined by the Board of Directors. Herman Miller also announced a temporary suspension of future dividends.\nDespite these actions to manage business operations in the near-term, one week after shutting down manufacturing in the wake of Governor Whitmer's \"Stay Home, Stay Safe\" executive order for the state of Michigan, Herman Miller welcomed ba...