Transforming Kimball International, Inc. (A)

Kimball International, Inc. (KII), led by CEO Kristie Juster, and its board of directors, chaired by Kim Ryan, faced critical questions about KII’s future in the spring of 2021. Two years earlier, the board had appointed Juster as the new CEO of KII, a publicly traded, small cap maker of commercial office furniture based in Jasper, Indiana. Juster had set in motion a major organizational transformation aimed at putting KII on a higher-growth trajectory. Under her leadership, the company had examined its purpose, adopted a new strategy, revised its compensation plan, and undergone a major restructuring. And then, COVID-19 hit. The company adapted quickly, but the pandemic had a significant impact on KII’s profitability and stock price, and on executive pay which was significantly tied to both. As the pandemic dragged on, the board had to decide how to design an executive compensation plan that would be fair to employees, fair to shareholders, and meaningful to executives in a highly competitive labor market, while also aligning with KII’s purpose and strategy, and driving its ongoing transformation.