Hostess Execs To Receive Bonuses, Judge Rules
CNBC broke the news this afternoon via this tweet:
BREAKING: Judge approves Hostess bonus payout plan; 19 Hostess senior executives in line for up to $1.8M in bonuses
— CNBC (@CNBC) November 29, 2012
The Teamsters opposed the decision, saying:
The Teamsters stridently objected. From the court filing:
…there is no basis under any possible standard of review, including business judgment or “justification by the facts and circumstances of the case,” 11 U.S.C.§ 503 (c)(3), for the Court to conclude that the requested payments should be approved. This is particularly true in these tragic circumstances where so many thousands of employees have lost their jobs and benefits, and where remaining non-senior management employees will receive an incentive payment of no more than 25% of their compensation during the wind down period.
Teamster attorneys are arguing that the bonuses are against the law. This compensation is in addition to the regular pay already being received by these executives, and there is the promise of additional rewards for two of the executives if they ‘efficiently’ carry out the liquidation process.
- Hostess seeks approval for exec bonuses (toledoblade.com)
- Judge OKs bonuses for execs in Hostess liquidation (newsworldwide.wordpress.com)
- Judge OK’s bonuses for execs in Hostess liquidation (wyff4.com)
- $1.8 Million Bonus Payout Plan Approved For Hostess Execs As The Company Liquidates (businessinsider.com)
- Must Be Nice: Hostess’ Still Wants To Pay Millions In Bonuses To Top Execs After Filing For Bankruptcy!! (bossip.com)