A bankruptcy judge has approved bonuses for the job creators who successfully steered Hostess into bankruptcy.
The update on the sale of the company’s brands comes as Hostess seeks approval in U.S. Bankruptcy Court in the Southern District of New York in White Plains, N.Y. to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans. The company says the incentive pay is needed to retain the 19 corporate officers and “high-level managers” during the liquidation process, which could take about a year.
Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation. The bonuses would be in addition to their regular pay. A spokesman for Hostess noted executives will need to meet certain goals to get the bonuses.
(via Huffington Post)
As for the jobs they destroyed created:
In court Thursday, an attorney for Hostess noted that the company is no longer able to pay retiree benefits, which come to about $1.1 million a month. Hostess stopped contributing to its union pension plans more than a year ago.
These guys just have to be rewarded for cleaning up their own mess, because, apparently, only they have the smarts to do it.
Seems to me we’ve heard this before.
Oh, I remember now:
CBSNews says that AIG will be suspending “bonuses” for executives and will instead replace them with “retention payments.” We’re not entirely sure what the difference is and the government doesn’t know either.
(via The Consumerist)
Failure’s just another word for so much left to gain.