April 19, 2014

Million Dollar Bonuses For Hostess Execs

( 4UMF NEWS ) Million Dollar Bonuses For Hostess Execs:

A federal bankruptcy judge finalized the liquidation of Hostess Brands on Thursday and approved a bonus plan for senior executives involved in the wind-down of the company.

Union representatives had opposed the plan, which offers $1.75 million in bonuses ranging from $7,400 to $130,500 for 19 executives, provided they meet certain benchmarks in managing the liquidation. But Judge Robert Drain said the plan was appropriate, citing testimony that it had been independently vetted and was below market value for firms in similar circumstances.

He said the liquidation would call for work “significantly beyond the type of jobs that [the executives] were doing at the start of this case,” and called the incentive plan “an exercise of proper business judgment.”

He noted that the over 3,000 rank-and-file employees assisting in the liquidation were also getting paid beyond their regular salaries, and that new Hostess CEO Greg Rayburn had ruled out a bonus for himself.

Drain declined to appoint an independent trustee to oversee the liquidation, saying it was not necessary but could be later if circumstances change.