Sears gets approval to pay $25.3 million in bonuses to top execs after filing for bankruptcy

[Judi Lynn]

Source: The Hill

BY ARIS FOLLEY - 12/15/18 10:14 PM EST

A U.S. bankruptcy court on Friday reportedly approved Sears’ request to pay as much as $25.3 million in bonuses to the company’s top executives and high-ranking employees, just months after the company filed for bankruptcy.

The company behind Sears, Hoffman Estates-based Sears Holdings Corp, argued it needed to give employees such a financial incentive to encourage them to remain with the company as it works to rebuild, despite it reporting nearly $1.9 billion in losses in the first three quarters of this year, CBS News reported.

"Under these circumstances, it would be understandable if many key employees are asking themselves whether they should be seeking other opportunities," the company said in a court filing in November, according to the publication.

But the company “cannot afford this uncertainty — however understandable it may be,” the filing also reportedly states.

Read more: https://thehill.com/policy/finance/421565-sears-gets-approval-to-pay-253-million-in-bonuses-to-top-execs-after-filing

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[TreasonousBastard]

1. Ah, American capitalism... Destroy a company and then get paid to bring it back...

from the dead.

If they really want to reinvigorate whatever shell of Sears is left, pay the money to Wal-Mart or Target execs who can do the job.

[mr_lebowski]

2. I'd been keen to know how many people we're talking about here ... is it 5?

At multiple millions per person? If so ... F*** THAT!

However, if it was 5K people, all at roughly $5K a pop ... that might be a bit more tolerable of a situation.

Of course ... you know it's probably closer to the former.

[budkin]

3. How is this not illegal?

It's absolute INSANITY.

[LittleGirl]

6. I know right?

It should be illegal but the GOP is more worried about those people crossing the border instead of our own citizens getting the shaft.

[InAbLuEsTaTe]

4. Only in America!!

[democratisphere]

5. The wealthiest a**holes that destroyed an iconic company and an iconic

name want to rewarded for being miserable failures! Our f'ed up system always rewards these corrupt failures when it probably should be throwing them in jail. When suppliers and employees take the hit, the executive management should also feel the pain! Corporate America is just one more national disgrace.

[Jeffersons Ghost]

15. you got that right!

[no_hypocrisy]

7. Couple of things:

1. Since when do top executives and top-ranked employees become creditors when bonuses are concerned? Salary, yes - but not bonuses.

2. Other creditors are forced to take pennies on the dollar for their debts. Even if bonuses are allowed, why aren't they reduced?

[Vinca]

8. Rewarded for failure. How much did the judge cost them?

[3Hotdogs]

9. Well, why not? Sears proletariet will get unemployment, won't they?

[oldlibdem]

17. Are you being funny??

[laserhaas]

10. Bullshit is as Bullshit does

This is a bribe, pure and simple.

Plenty of execs ready willing and able to handle the SEARS case - for lot less money.

When I ran eToys, during the bankruptcy, the lawyers snuck in a motion - approved - to double the pay of 1000 employees.

It's all Bullshit - open bribery - so departing employees keep their mouths shut about the surreptitious...

[turbinetree]

11. Can Democracy Survive Globalization................?

Maybe this asshole can contact MITT ROMNEY and ask him if he did this correctly...............same format, same game plan.............................or a how about Jeff Bezo's................... after all they are all hedge fund managers.......................

[Codeine]

12. Guillotines. nt

[llmart]

13. This is not a new phenomenon.

It's been going on since the Reagan years. Corporate bankruptcy laws were changed. This is where the term "golden parachute" was coined. These top execs have employment contracts that spell out just what they get if they leave/are fired/the company goes under.

Corporations file for bankruptcy, they come back under another name, maybe new board of directors, hire the same jackasses back (or rather they get shuffled from one corporation to another) and voila! They actually get rich off of driving a company into the ground.

[elmac]

14. isn't capitalism beautiful

and that 2005 bankruptcy law was a big, sweet kiss to corporations while we the people got the shaft.

[Maxheader]

16. Thats a typical excuse..

encourage them to remain with the company as it works to rebuild

Can they run the cash register? Can they stock shelves? Can they deal with irate customers
returning faulty merchandise? What can they do of benefit to the store?

[Initech]

18. Take the money and run.

[Nitram]

19. A bonus because they did such a great job bankrupting the company.

And you wouldn't want to waste the money on mere employees.

[bluestarone]

20. Friggin greed and money has completely taken over our country

[Astraea]

21. I'll be sure to ask my boss for a bonus

after I burn the store to the ground.

[Yo_Mama_Been_Loggin]

22. Sickening isn't it.