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This will be interesting to watch. Most are unaware, the same discretion that BK judges have with union contracts, they also have with contracts between the corp and individual executives.
From the article...
In seeking court permission for its demise, Hostess said it wants to pay as much as $1.75 million in incentive bonuses to 19 senior managers during the liquidation.
That comes out to approx. $92,000 per manager.
Hostess is asking the judge to approve its plan -- which would result in the firing of thousands of employees -- to shut down 36 bakeries, 242 depots, 216 retail stores, and 311 hybrid depot-storees, according to court filings. There are 58 other leased or owned sites used for storage, warehousing of products or parking.
The process requires "intensive" planning, staffing and funding, the company said. A fire-sale liquidation would damage equipment and result in improper disposal of waste materials. It's "not a simple matter of turning off the lights and shutting the doors," Hostess said in court papers.
So the bonuses are incentives so that those managers will not flee the company for other work, but will stay on and complete the shutdown in a proper manner. I don't know what the annual pay of those managers are, but the reasoning for the bonuses is not abnormal. It would be much easier to leave the company immediately and get other work - so an incentive is needed for them to hang around.
[quote=DRob4JC;27023758. It would be much easier to leave the company immediately and get other work - so an incentive is needed for them to hang around.[/quote]
Except per the WSJ and business journals, it has been totally mismanaged, so who would want their mgmt team?
From the article...
In seeking court permission for its demise, Hostess said it wants to pay as much as $1.75 million in incentive bonuses to 19 senior managers during the liquidation.
That comes out to approx. $92,000 per manager.
Hostess is asking the judge to approve its plan -- which would result in the firing of thousands of employees -- to shut down 36 bakeries, 242 depots, 216 retail stores, and 311 hybrid depot-storees, according to court filings. There are 58 other leased or owned sites used for storage, warehousing of products or parking.
The process requires "intensive" planning, staffing and funding, the company said. A fire-sale liquidation would damage equipment and result in improper disposal of waste materials. It's "not a simple matter of turning off the lights and shutting the doors," Hostess said in court papers.
So the bonuses are incentives so that those managers will not flee the company for other work, but will stay on and complete the shutdown in a proper manner. I don't know what the annual pay of those managers are, but the reasoning for the bonuses is not abnormal. It would be much easier to leave the company immediately and get other work - so an incentive is needed for them to hang around.
Pardon my french, but what a crock of shyt.
Fox News or Rasmussen polls couldn't have put a better spin on this story.
The justification for this "bonus" is not worthy of a serious response.
Except per the WSJ and business journals, it has been totally mismanaged, so who would want their mgmt team?
I am just spelling out the reason for the bonuses - in that it is not some golden parachute. It's not always easy doing a big shutdown - especially if the company has been mismanaged.
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