Grand Rapids, Mich.-based Steelcase (NYSE: SCS ) will soon have a new CEO.
On Thursday, Steelcase announced that it has appointed current President and Chief Operating Officer James P. Keane to take over the top spot on the first day of the company's next fiscal year, when sitting Chief Executive Officer James P. Hackett retires from office in March 2014. Hackett intends to serve as the company's vice chairman for one year and to remain on the board of directors.
A 16-year veteran of the office furniture manufacturer, Keane has in the past led research and development, corporate strategy, information technology, and finance efforts at Steelcase, before being promoted to responsibility for the entire Steelcase brand in North America in 2006. In a separate filing with the SEC, Steelcase disclosed that it intends to compensate Keane in his new post with an annual base salary of $800,000, plus:
- an annual bonus targeting 90% of base salary, beginning in fiscal 2015;
- 150,000 restricted stock units vesting over three years, which were awarded him on Wednesday; and
- a long-term incentive award, also beginning in fiscal 2015, consisting of a mix of restricted stock units and performance units worth "approximately 250%" of his annual base salary in aggregate.
Keane will be expected to acquire and retain company shares sufficient to equal at least five times his annual base salary during his term in office as CEO.