Ainsworth Lumber Co. Executives Forgo Pay Raises Amid Company Struggles

The Vancouver-based Ainsworth Lumber Co. has reported that its top five executives, including members of the Ainsworth family, did not receive any pay increases, bonuses, or stock options in 1997 due to the company's financial struggles. The company's stock price fell 46% in 1997, and its loss widened to $28.3-million, while revenue rose to $308.2-million. Chairman Brian Ainsworth, who received a salary of $175,000, and other executives also saw no change in their compensation.

Key Takeaways:

• Ainsworth Lumber Co.'s top five executives, including the Ainsworth family members, did not receive any pay increases, bonuses, or stock options in 1997.
• The company's stock price fell 46% in 1997, and its loss widened to $28.3-million.
• Revenue rose to $308.2-million in 1997, a $8.6-million increase from 1996.
• Chairman Brian Ainsworth received a salary of $175,000, unchanged from 1996.
• Other executives, including D. Allen Ainsworth, Catherine Ainsworth, Steven Silveira, and Michael Ainsworth, also saw no change in their compensation.
• The company's financial struggles were attributed to rising government tree-cutting fees and weak prices for oriented strand board.
• The Ainsworth family owns approximately 61% of the company.

Statistics:

• Ainsworth Lumber Co.'s stock price fell 46% in 1997.
• The company's loss widened to $28.3-million in 1997, a $21.9-million increase from 1996.
• Revenue rose to $308.2-million in 1997, a $8.6-million increase from 1996.
• The company's stock price fell to $3.30 a share at the end of 1997 from $6.10 at the end of 1996.
• Chairman Brian Ainsworth's salary remained unchanged at $175,000 in 1997.

Sources:

• Bloomberg News
• Ainsworth Lumber Co. management circular
• Report on Business Company Snapshot