GREEN — Diebold Nixdorf said Monday it is adjusting an executive bonus program less than two weeks before shareholders are set to vote on the proposal.
The change would eliminate a discretionary quarterly bonus program that rewarded five leading executives. In a filing with the U.S. Securities and Exchange Commission, the company said the program is being suspended after accomplishing its goal of stabilizing the company and retaining key personnel.
Diebold Nixdorf made a separate announcement Monday that it has hired Elizabeth Patrick as senior vice president, chief people officer. She will oversee the company's global human resources program for more than 23,000 employees.
Patrick has 30 years of experience with companies in a number of industries, including packaging, power and data solutions, logistics and supply chain and automotive. She come to Diebold Nixdorf after serving as senior vice president and human resources officer for Vertiv Corp.
The previous human resources manager, Patty Lang, left Diebold Nixdorf earlier this year for a similar position at Colfax Corp. in Annapolis Junction, Md.
Several top executives have left the company since Gerrard Schmid was hired as president and chief executive officer in February 2018 to replace Andy Mattes, who resigned in December 2017.
The company's annual shareholders meeting is April 25 in Cleveland, and the proxy statement includes measures covering executive compensation.
The quarterly bonus program is one piece of a package that covers Schmid; Jeffrey Rutherford, senior vice president and chief financial officer; Ulrich Naher, senior vice president for products; Olaf Heyden, senior vice president for services; and Jonathan B. Leiken, senior vice president, chief legal officer and corporate secretary.
According to the proxy statement, the board's compensation committee launched the quarterly bonus program late last year, along with a turnaround bonus award, to help retain key executives to propel the DN Now program established by Schmid.
Part of the DN Now program involves cutting costs. The initial target was to reduce costs by $250 million, but the program topped that savings target, pushing it to $400 million during the fourth quarter. Given those results, the board "felt the quarterly bonus program has served its purpose, thus its suspension," a company spokesman wrote in an email.