Judge Approves Armstrong Naming New CFO

Lancaster, PA, Jan. 25--A federal bankruptcy judge has allowed Armstrong World Industries to hire a new chief financial officer for more than $800,000. Judge Judith K. Fitzgerald, in an order filed today, approved the hiring of F. Nicholas Grasberger and his employment contract. As the New Era reported in December, the contract calls for a $450,000 annual salary, a $300,000 hiring bonus and $84,000 in moving assistance. Grasberger also will be eligible for two performance incentives with target bonuses totaling $1.08 million, a $450,000 retention bonus if he's still at Armstrong in December, 41,400 shares of restricted Armstrong stock and 124,200 stock options when Armstrong emerges from bankruptcy and various benefits. Grasberger, the former CFO for Kennametal Inc. in Latrobe, joins Armstrong two months after the company said it will cut 690 workers nationwide to boost profits. Armstrong, in bankruptcy since December 2000 to resolve asbestos lawsuits filed against it, needed the court's approval because the hiring represents a sizable expense.