Hostess to seek approval for executive bonuses, liquidation plan

[xchrom]

http://www.washingtonpost.com/business/hostess-to-seek-approval-for-executive-bonuses-liquidation-plan/2012/11/29/4ec8f34e-3a24-11e2-9258-ac7c78d5c680_story.html

NEW YORK — Hostess Brands Inc. plans to ask for a judge’s approval Thursday to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans.

The maker of Twinkies, Ding Dongs and Ho Hos says the incentive pay is needed to retain the 19 managers during the liquidation process, which could take about a year. Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation.

Hostess is also seeking final approval for its wind-down, which was approved on an interim basis last week.

The process includes the quick sale of its brands, which also include Wonder Bread. Hostess says it has received a flood of interest in the brands.

[RKP5637]

1. Yep, bonuses for bankrupting the company and taking it over the cliff. They should be

serving jail time in my book. I see former execs. of some of the failed companies I worked for now serving in lofty positions in other companies, universities and the like. They ran the companies under where I worked and I guess others want the knowledge of how to fuck over your employees for your personal gain and profit. What a system runaway capitalism is ... it's obsolete. And belongs in the history books.

[no_hypocrisy]

2. Put the money back in the workers' pension funds.

[liberal N proud]

3. When are we going to stand up and call this bull shit

Executives have absolutely no incentive to make a business run when they get bonus pay even when the company fails.

[xchrom]

5. simple and to the point. well said. nt

[liberal N proud]

6. I am watching it start to unfold where I currently work

Don't know how much longer I will have a job after 28 years, but the execs all are getting a bonus while we are closing facilities and reducing the workforce by 10% or more.

[xchrom]

7. ...

[LiberalFighter]

11. Gee, I wonder where the money came for their bonuses?

When will people figure it out?

It's just like our taxes. If the rich are paying low taxes who is making up the difference? Geesh!

[closeupready]

13. Predatory capitalism. Or "getting Bained" is the urban-ological

term.

[Starry Messenger]

4. Bandits.

[proud2BlibKansan]

17. Exactly

[niyad]

8. oh yes, "a flood of interest in the brands", now that we don't have to deal with "the complications

of the unions"

those bastards should be fined and jailed, not rewarded.

[Sherman A1]

9. I think a nice Federal Facility

rather than a bonus, but that's just my opinion.

[gollygee]

10. Robber barons

and they need to be stopped.

[LiberalFighter]

12. If they get granted the bonuses

The money should be taxed 5% above whatever is the current tax rate with a minimum of 40%. ON ALL OF IT.

[W T F]

14. Why would you need $1.8 million to retain the people who ran a company into the ground?

They've proved themselves incompetent. What makes you think they can carry out the liquidation process?

[AlbertCat]

15. Twinkies, Ding Dongs and Ho Hos

That's not what they make... it's who runs the company.

[blackspade]

16. They should get nothing!

[ParkieDem]

18. I just want the facts ...

Are these really "bonuses," or simply salaries to keep the mangers on during liquidation?

Believe me, I'm all against the abuse of "retention bonuses" that are obscene in many cases. But $1.8 million spread across 19 managers comes out to a little under $95,000 apiece. Not really that much.

I just wonder if this is on top of their regular salaries, or if its all they'll be making during the wind-down process.

And, correct me if I'm wrong, but I think these "bonuses" are commonly approved by bankruptcy courts (unless they're excessive, which in this case, I don't think they are, on their face) if the creditors don't object.

[SpankMe]

19. Criminal incompetence

Also, something doesn't add up here.

The article says the company grosses $2.4B/yr. Say labor cost is 40% of that (which is high for an operations like packaged processed food manufacturing). That's $960M in salaries and benefits.

That leaves $1.44B left. Baked goods is low food cost. Even when you include packaging, marketing and distribution to the production cost, it should still be easy to make $1.1M monthly payments into the pension fund. They can't be working on that much of a shoestring with income like that.

The company is severely mismanaged. The execs deserve nothing.

[Yo_Mama_Been_Loggin]

20. Nice work if you can get it.

Where else can you get rewarded for fucking things up?