Court Grants Failed Hostess Executives Nearly $2 Million Dollars In Bonuses
I am no whiz kid or financier but I do know that we should not reward failure and to me that is exactly what the courts did earlier today. How does one justify granting almost $2 Million dollars to executives who most likely helped cause the fall of the company.
Just sounds crazy doesn’t it? The greed that brought the company down is being rewarded while over 15,000 just try and maintain their measly insurance. What is wrong with this picture. And what reason do the courts give for awarding the bonuses? They do so in hopes the executives will ‘stick around’ through the bankruptcy process.
And to top it off lawyers today also said they were unable to continue to make payments on retirement plans that totaled about $1.1 Million a month.
Look at what happened to Kodak. 56,000 former employees lost their court battle and will lose their insurance the end of the year while top executives were rewarded 10’s of millions in bonus money.
Not all the big shots are getting rewarded. CEO Gregory Rayburn, who was brought in earlier this year to restructure the company was paid about $125,000 per month. So I guess he has enough money to hold him over for a bit and he will continue to receive a salary through the legal process.
Oh by the way, these bonuses are in addition to the paychecks they still receive.
Was it all the fault of these executives? Was it the bakers union? Who knows and who cares but this money should never have gone into anyone’s pockets that didn’t earn or deserve it. If an executive is still receiving a paycheck they should not be entitled to a bonus on top of it; especially those who are retired who had nothing to do with the failure of the company. Shouldn’t they be the first to receive some form of a bonus?