HawkerBeechcraft execs seek $5.3M Ch11 bonus
07-17-2012, 09:02 AM
#1
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Joined APC: Apr 2012
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HawkerBeechcraft execs seek $5.3M Ch11 bonus
Bankrupt Hawker Beechcraft seeks court OK of $5.3M in executive bonuses | LeveragedLoan.com
Interesting bankruptcy move by management:
Although not assuming liabilities for the company’s three defined benefit pension plans, the reorganization currently calls for $5.3 million in bonuses to be distributed to 9 top execs
Bankrupt Hawker Beechcraft seeks court OK of $5.3M in executive bonuses | LeveragedLoan.com
Interesting bankruptcy move by management:
Although not assuming liabilities for the company’s three defined benefit pension plans, the reorganization currently calls for $5.3 million in bonuses to be distributed to 9 top execs
Bankrupt Hawker Beechcraft seeks court OK of $5.3M in executive bonuses | LeveragedLoan.com
07-17-2012, 11:26 AM
#2
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Joined APC: May 2010
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Often times there are strategic reasons for why a company facing big changes needs to retain certain leaders. These leaders are faced with the fact that they may very well be replaced if a new owner is in power. They have little incentive to stick with the company through the changes, at a time when their knowledge and experience with said company is more valuable than ever. Bonuses are one way to "convince" these execs to weather the storm, rather than jump ship.
07-18-2012, 06:32 AM
#4
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,619
If there's little incentive for management to stay through the end of BK, then let them leave for "better" opportunities.
The fact they're in bankruptcy in the first place shows management failed miserably at their responsibilities.
However as said, $5.3M over 9 executives is a pittance for similar proceedings in the aviation world. That doesn't make it any easier for anybody who has lost their job or kept their job with a paycut to swallow, however...
The fact they're in bankruptcy in the first place shows management failed miserably at their responsibilities.
However as said, $5.3M over 9 executives is a pittance for similar proceedings in the aviation world. That doesn't make it any easier for anybody who has lost their job or kept their job with a paycut to swallow, however...
07-18-2012, 06:48 AM
#5
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07-18-2012, 11:28 AM
#6
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The reward should be being able to continue to act an executive/CEO when the company emerges. If that's not enough, it's symptomatic of a much larger problem that won't be solved by rewarding the execs, it means there are fundamental problems with how they do business, the market, etc.
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