This excerpt taken from the WGO DEF 14A filed Oct 27, 2009.
Our success has been and will be dependent on our ability to attract, retain, motivate and reward the best talent available to the Company, including the employees identified in this Proxy Statement. The following provides an overview of the more detailed disclosure set forth in this section.
The primary objectives of our executive compensation programs is to attract and retain key executives critical to the Company; to align the interests of our Management with those of our shareholders; to integrate compensation with the Companys business plans; and to reward for both business and individual performance, whereby a substantial portion of each executive officers total compensation potential is a function of performance incentives.
Overall, we normally compensate our executive officers with base salary, annual incentive awards and long-term incentives. For our executives as a group, we generally emphasize a conservative base salary compensation relative to our Compensation Peers (as defined below). We
alternatively provide the potential for a greater incentive compensation component of total executive compensation. Annual and long-term operational and strategic goals identified by Management and approved by the Human Resources Committee of the Board of Directors (the Committee) are the foundation for the performance measures used to determine annual and long-term incentive payouts to our executive officers. In prior years, we have granted our executive officers restricted stock as a means to further align the interests of our executive officers with those of our shareholders.
The Company experienced economic conditions during Fiscal 2009 that were unprecedented within the recreational vehicle industry. The decline in the U.S. economy during this period resulted in the demand for recreational vehicles reaching historically low levels. In direct response to negative economic conditions affecting the broader U.S. economy and the declining economic performance of the Company, the Company initiated numerous cost reduction initiatives during Fiscal 2009, including certain actions directly related to executive compensation. These compensation-related cost reduction initiatives, as more fully discussed in the Compensation Discussion and Analysis section below, include:
In light of the philosophy and objectives of our executive compensation program described below, we believe that the basic elements of compensation offered to our executives were appropriate for Fiscal 2009 and should not change for Fiscal 2010. Although the Company remains subject to the economic environment negatively affecting the recreational vehicle industry, we are determined to provide for adequate compensation programs necessary to retain and motivate our executives to implement strategic initiatives we believe are necessary to increase shareholder value and restore consistent profitability in the future.
This excerpt taken from the WGO 10-K filed Nov 10, 2005.
Motorized products represented 60 percent of the RV industry revenues in Calendar 2004. For this reason and because we believe there are further growth opportunities in this segment, Winnebago Industries has continued to focus on the motorized segment of the RV industry. Funds for RV purchases, especially the motorized segment, usually come from a buyers discretionary income. The RV market, long known as a cyclical market, follows consumer confidence levels; therefore, as confidence levels decline so may the number of units sold. The RV industry as a whole is currently experiencing decreased sales of units in the motorized segment. There are recent indications that industry-wide motor home production has exceeded market demand. The Company remains a market share leader and will monitor its inventories on hand to ensure that production is in line with market demand.
Winnebago Industries manufactures and sells a variety of motor homes throughout the United States and Canada, as well as retail parts and accessories. RV classifications are based upon standards established by the RVIA. The only types of RVs that we produce are Class A and Class C motor homes. Winnebago Industries is a leader in the motorized RV segment of the industry in the combined retail sale of Class A and Class C motor homes with a retail market share of 17.5 percent for calendar year-to-date through August 2005.
While market share is important, the Companys primary goal is to be the most profitable public company in the RV industry. The Company measures profitability by using five guidelines: ROA, ROE, ROIC, operating income as a percent of sales and net income as a percent of sales.