An agreement stipulated with the president Emea Morel guarantees the manager a bonus of 3 million for the disposal of the Emea activities by 30 June 2024
We were right. Since last April, Whirlpool has given mandate to sell all its assets production, research and commercial areas in the EMEA area (Europe, Middle East and Africa): The confirmation comes from a document published by MarketScreener according to which, with an agreement signed on August 17, 2022, the company would have instructed the executive vice president and president of the company Whirlpool Emea, Gilles Morel to close the disposal of the EMEA activities no later than June 30, 2024. Once the “transaction” has been completed, Morel will receive a bonus of 3 million euros.
Whirlpool’s farewell to Europe
The agreement refers to the plan of strategic review of the EMEA region announced by the company in April. As expected, Morel will receive from the company a 3 million euro bonus, all in cash. The incentive will be paid in two installments: 35% of the total amount will be paid on the closing date of the transaction that will mark the divestment of the EMEA activities. The remaining 65% will be paid on June 30, 2024, “subject to the continuation of Mr. Morel’s satisfactory employment relationship with the Company or with any other company after the first applicable installment date”.
In the event that the sale should fail, or if it is closed after June 30, 2024, Morel will not receive even one euro.
The above agreement will be filed as an attachment to the Company’s quarterly report for the quarter ending September 30, 2022.
Fitch takes Whirlpool’s outlook from positive to stable
In this context, last August 9, the rating agency Fitch revised Whirlpool’s outlook, bringing it to stable from positive. Among the reasons behind the variation, Fitch cites, the signature ofagreement with Emerson Electric for the acquisition of InSinkErator for 3 billion dollars, the continued pressure on margins due to thecost inflation and the uncertainties about the conclusion of the Whirlpool’s strategic review of its EMEA activities.
On the last aspect, in particular, the agency explains that: “in April 2022, the company launched a strategic review of its EMEA business and plans to conclude the assessment in the third quarter of 2022. The potential result of this review could range from retaining ownership of the segment to full disposal, depending on management. The segment contributed about 23% of the company’s total revenues and for 4% to the adjusted EBIT of the company (before the company eliminations) in the year 2021 “.