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Print Edition StoriesThursday, March 26, 2009
Watts Water axes 400 jobs, gives top execs raises
By Efrain Viscarolasaga
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In it’s annual report filed in February, North Andover-based Watts Water Technologies Inc. stated it would shed 400 jobs and consolidate its operations in an effort to recover from a significant downturn in stock price and net income. Yet in a new regulatory filing, the company reported its executive board has received a pay raise and additional perks valued in the hundreds of thousands of dollars.
As first pointed out by the Boston Business Journal yesterday, the executive board of Watts Water Technologies (NYSE: WTS), including CEO Patrick O’Keefe, CFO William McCartney and marketing chief Ernest Elliot, all received pay raises of between 3 percent and 20 percent, while also receiving additional compensation for automobiles, housing and even sports tickets.
Meanwhile, the maker of scientific tools and technologies’ net income fell 40 percent last year, culminating in the loss of 400 jobs through the closure of three of the company’s plants in China and North America, announced in late February.
The executive compensation plan also allocates $781,814 in compensation for Timothy Horne, its chairman and former CEO, who is contractually bound to work between 300 and 500 hours per year as a consultant for Watts Water.
Overall, Watts Water saw an increase in revenue in 2008, up to $1.56 billion from $1.38 billion in 2007. However, the company’s net income fell from $77.4 million in 2007 to $46.6 million in 2008.
The situation doesn’t seem to be hurting the company’s status on Wall Street, however. Watts Water’s stock price has gone from 52-week low of $15.96 on March 9, in the wake of the plant closings, to opening today at $19.49.
The Business Journal cited regulatory filings, which listed the compensation details:
• Chief financial officer William McCartney’s total compensation rose 5 percent to $1.12 million. He was also given $18,000 in auto perks and $510 in sports-events tickets.
• European group director J. Dennis Cawte’s pay increased 3 percent to $833,682. His compensation included $19,082 in auto allowances and a $45,740 contribution to his retirement plan.
• Marketing chief Ernest Elliot’s compensation jumped 20 percent to $774,739. His pay included around $15,000 in auto allowance payments.
•Asia president Josh Fu’s compensation totaled $633,792 in 2008, the first year his pay was detailed by the company. Fu’s pay included a $31,000 auto allowance and a $104,000 housing allowance.
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