– Bankrupt Toys “R” Us wins OK to pay $16 million in executive bonuses:
(CNN Money) — Toys “R” Us has won approval to pay $16 million in bonuses to 17 top executives if the company hits financial targets during the holiday shopping season.
The bankruptcy court trustee Judy Robbins, a Justice department attorney who represents the interest of creditors, had argued that the proposed bonuses were excessive and were little more than retention bonuses meant to keep the executives from jumping ship due to uncertainty about the company’s future.
While companies in bankruptcy are allowed to issue incentive bonuses, retention bonuses are not permitted.
“It defies logic and wisdom, not to mention the Bankruptcy Code, that a bankrupt company would now propose further multi-million dollar bonuses for the senior leadership of a company that began the year with employee layoffs and concludes it in the midst of the holiday season in bankruptcy,” she argued in her filing. “Apparently, this Christmas, Toys “R” Us intends to deliver not only ‘children their biggest smiles of the year’ but the insiders, too.”
…
H/t reader squodgy:
“Erm…the price of incompetence?
The really unacceptable face of capitalism.”
* * *
PayPal: Donate in USD
PayPal: Donate in EUR
PayPal: Donate in GBP