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May/June 2000

Field of Vision
        From the Publisher

 

Court Documents
Offer a Unique Look

by Debra Levy

 

The 800+ pages of legal motions, affidavits and plans filed in the first week after Safelite’s Bankruptcy petition provide a fascinating glimpse at the nation’s largest auto glass repair and replacement company. The documents include information about the company that is rarely released by privately-held companies. No other auto glass retailer in the country is close to the size of Safelite. The court papers filed by the company highlight its sheer size and magnitude. In them, the company states that:

• Safelite operates in all of the top 100 metropolitan areas of the United States. It installed 2.8 million replacement glass units last year;

• It provides services through 525 service centers, 2,200 mobile vans, 32 centralized telephone dispatch centers and a network of 20,000 independent auto glass replacement and repair providers;

• The company employs approximately 6,200 employees. Of those, ten are considered executive officers, or senior managers. The average annual salary for senior managers is $353,500, excluding bonuses;

• It has 1,277 salaried employees, making up approximately 21percent of its workforce. The average annual salary of these employees, excluding bonuses and other incentives, is $46,801 for full-time employees and $16,290 for part-time employees;

• Safelite had 4,878 hourly employees on June 9, accounting for approximately 79 percent of its workforce. These include CSRs, technicians and clerical staff. Their average salary, excluding bonuses and incentives, is $24,292 for full-time workers, and $20,181 for part-timers;

• Most employees participate in some type of incentive compensation plan—the company has 24 different plans. Most incentive plans are paid quarterly. The company’s TRIAD Bonus Plan, which provides incentives to field sales accounts to develop business with State Farm, Nationwide and other key accounts, is paid monthly. At the time of the filing, $60,000 was owed;

• The “Powerbucks” plan, provides incentives for auto glass technicians based on the number of units installed per day. It is paid semi-annually. At the time of the filing, $587,596 was owed;

• Safelite is party to 18 non-compete agreements with its former employees. The total amounts to be paid under such agreements over the next two years is approximately $600,000. The company also states that it “is considering rejecting a small number of such agreements, the numbers for which are not included herein where it does not believe it is obtaining a significant benefit as compared to the cost of such agreements;

• As of June 9, the company had 474 active bank accounts, maintained at 136 different banks;

* The company has closed 160 locations since late 1999. In addition, court documents say that Safelite “has identified certain other locations for closing in connection with its restructuring program.”

(For more coverage of the Safelite filing, please see pages 30-35.)

Debra Levy, Publisher

AGRR

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