Whirlpool’s Restructuring Sees Top Lawyer Get $3 Million Payout

Whirlpool Corp., a manufacturer of home appliances facing financial headwinds, parted ways with its chief legal officer Ava Harter as of March 8.

Harter’s departure from Whirlpool will see her receive roughly $3 million in severance payments, according to a securities filing by the company. Whirlpool, which hired Harter from Owens Corning in late 2020, said her job was “eliminated” March 1 as part of a “global corporate reorganization.”

A Whirlpool spokesman said Harter “decided to leave” as the company moves to a “decentralized model with more autonomous business units and a leaner, more strategic corporate center.” Kyle De Jong, who has spent a decade at Whirlpool, most recently as the top lawyer and chief compliance officer for its North American business, replaces Harter as general counsel, the company said.

Kirkland & Ellis advised Whirlpool on an agreement last month with a handful of large banks designed to reduce its debt load. The Benton Harbor, Mich.-based company, owner of brands like KitchenAid and Maytag, announced in January that a weak home sales market would likely decrease demand for its products this year.

Whirlpool said its corporate restructuring will come in two waves that will result in an unspecified number of employees losing their jobs and simplify the company’s operations. Harter earned almost $2.5 million in total compensation last year, according to a proxy statement filed March 4.

In that filing, Whirlpool said Harter’s C-suite position was “re-scoped as a non-executive officer position,” which led to her separation. A waiver and release agreement disclosed by Whirlpool shows that Harter will be paid more than $2.9 million in two installments due this month and in March 2025.

Harter, who didn’t respond to a comment request, is also eligible to receive an additional $93,400 in transition consulting benefits and $32,000 for health insurance in exchange for a release of potential claims against Whirlpool. Bridget Quinn, a deputy general counsel and corporate secretary for Whirlpool, was the signatory to the document revealing Harter’s exit.

Bloomberg data shows that Harter currently owns more than $1 million in Whirlpool stock. Nearly $1.5 million from her pay package last year was comprised of stock and option awards, according to Whirlpool’s most recent proxy filing. Harter also received almost $868,000 in cash, which included a $201,000 short-term incentive award, Whirlpool said.

The company’s analysis of Harter’s performance last year credited her with navigating a “constantly changing regulatory environment” and providing “critical oversight” of its compliance initiatives and legal strategy in the realms of intellectual property, governance, and corporate matters.