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Bankrupt Sears wants to give executives $19 million in bonuses

TU Curmudgeon

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From CNN

Bankrupt Sears wants to give executives $19 million in bonuses


New York (CNN Business)Sears is seeking court approval to pay executives as much as $19 million in quarterly bonuses while the company struggles to restructure in bankruptcy.

Three top executives could get nearly $1 million each if the company goes out of business. If Sears remains in business, they could get nearly $500,000 each for hitting the top performance targets.

Sears filed two different types of bonus plans in bankruptcy court Thursday. The first is for the top 18 "key" executives, who would collectively get as much as $2.1 million per quarter. The bonuses would only be paid in full if Sears reaches its cash-flow targets. Sears Holdings, which includes both Sears and Kmart, has been burning through cash at a rate of about $125 million a month.

A second retention bonus plan was designed to encourage 322 other unnamed executives to stay put during Sears' reorganization. They would collectively get $16.9 million a quarter, which works out to an average of about $52,000 per quarter per executive. No executive could receive more the $150,000 in bonuses for staying with the company during the bankruptcy process.

COMMENT:-

It appears that Sears' position is "It is essential to our financial health that we retain the services of these executives whose decisions drove us into bankruptcy in the first place.".

Some how, that doesn't actually seem to make sense.

Maybe Sears' real position is "If these guys jump ship then the value of our stock will plummet and a few very rich and influential people will lose a lot of money because they couldn't dump their shares in time.".

Whaddayou think?
 

Rexedgar

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Gotta strip the carcass before you bury it. :doh
 

Helix

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sounds a bit like embezzlement.
 

DaveFagan

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It's been such a slow motion approach to bankruptcy that I think the bonuses are bogus. The savvy management bailed a few years ago and what's left may or may not be quality leaders. From a perspective sympathetic to Sears that since stock bonuses are not exactly a desireable option, then cash is the only option. They're in large box retail and so many have bankrupted that I suspect that there is a surplus of these management types in the unemployed workforce. Sears just missed the boat on online retail/wholesale. Their own fault, bad management, bad luck, bad timing, or whatever. Brick and mortar down the tubes.
/
 

joko104

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From CNN

Bankrupt Sears wants to give executives $19 million in bonuses


New York (CNN Business)Sears is seeking court approval to pay executives as much as $19 million in quarterly bonuses while the company struggles to restructure in bankruptcy.

Three top executives could get nearly $1 million each if the company goes out of business. If Sears remains in business, they could get nearly $500,000 each for hitting the top performance targets.

Sears filed two different types of bonus plans in bankruptcy court Thursday. The first is for the top 18 "key" executives, who would collectively get as much as $2.1 million per quarter. The bonuses would only be paid in full if Sears reaches its cash-flow targets. Sears Holdings, which includes both Sears and Kmart, has been burning through cash at a rate of about $125 million a month.

A second retention bonus plan was designed to encourage 322 other unnamed executives to stay put during Sears' reorganization. They would collectively get $16.9 million a quarter, which works out to an average of about $52,000 per quarter per executive. No executive could receive more the $150,000 in bonuses for staying with the company during the bankruptcy process.

COMMENT:-

It appears that Sears' position is "It is essential to our financial health that we retain the services of these executives whose decisions drove us into bankruptcy in the first place.".

Some how, that doesn't actually seem to make sense.

Maybe Sears' real position is "If these guys jump ship then the value of our stock will plummet and a few very rich and influential people will lose a lot of money because they couldn't dump their shares in time.".

Whaddayou think?

The bankruptcy court should answer "hell no!"
 

beefheart

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Typical CEO circle jerk.
 

prometeus

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This is nothing new. Remember the big shots who got bonuses for bringing about the financial bust?
Typical crap from those who can get away with it. Who can stop them?
 

JustHanging

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From CNN

Bankrupt Sears wants to give executives $19 million in bonuses


New York (CNN Business)Sears is seeking court approval to pay executives as much as $19 million in quarterly bonuses while the company struggles to restructure in bankruptcy.

Three top executives could get nearly $1 million each if the company goes out of business. If Sears remains in business, they could get nearly $500,000 each for hitting the top performance targets.

Sears filed two different types of bonus plans in bankruptcy court Thursday. The first is for the top 18 "key" executives, who would collectively get as much as $2.1 million per quarter. The bonuses would only be paid in full if Sears reaches its cash-flow targets. Sears Holdings, which includes both Sears and Kmart, has been burning through cash at a rate of about $125 million a month.

A second retention bonus plan was designed to encourage 322 other unnamed executives to stay put during Sears' reorganization. They would collectively get $16.9 million a quarter, which works out to an average of about $52,000 per quarter per executive. No executive could receive more the $150,000 in bonuses for staying with the company during the bankruptcy process.

COMMENT:-

It appears that Sears' position is "It is essential to our financial health that we retain the services of these executives whose decisions drove us into bankruptcy in the first place.".

Some how, that doesn't actually seem to make sense.

Maybe Sears' real position is "If these guys jump ship then the value of our stock will plummet and a few very rich and influential people will lose a lot of money because they couldn't dump their shares in time.".

Whaddayou think?

Sounds like a typical Trump bankruptcy: Get suckers to trust you, then screw them.

How Trump Leveraged Other People’s Money to Make Bankruptcy Work for Him: A Timeline


Like the American people right now.
 

Helix

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Embezzlement is against the law.

Here they are asking the courts to say that it's OK.

the law only applies to little people. get big enough and you can take bribes through your attorney, ignore the emoluments clause, and pay yourself to travel to your own properties.
 

TU Curmudgeon

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This is nothing new. Remember the big shots who got bonuses for bringing about the financial bust?
Typical crap from those who can get away with it. Who can stop them?

Those folks "met the cash flow targets" - of course they had to count the bailout money as "income" to do so - but they DID "meet the cash flow targets".
 

jet57

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From CNN

Bankrupt Sears wants to give executives $19 million in bonuses


New York (CNN Business)Sears is seeking court approval to pay executives as much as $19 million in quarterly bonuses while the company struggles to restructure in bankruptcy.

Three top executives could get nearly $1 million each if the company goes out of business. If Sears remains in business, they could get nearly $500,000 each for hitting the top performance targets.

Sears filed two different types of bonus plans in bankruptcy court Thursday. The first is for the top 18 "key" executives, who would collectively get as much as $2.1 million per quarter. The bonuses would only be paid in full if Sears reaches its cash-flow targets. Sears Holdings, which includes both Sears and Kmart, has been burning through cash at a rate of about $125 million a month.

A second retention bonus plan was designed to encourage 322 other unnamed executives to stay put during Sears' reorganization. They would collectively get $16.9 million a quarter, which works out to an average of about $52,000 per quarter per executive. No executive could receive more the $150,000 in bonuses for staying with the company during the bankruptcy process.

COMMENT:-

It appears that Sears' position is "It is essential to our financial health that we retain the services of these executives whose decisions drove us into bankruptcy in the first place.".

Some how, that doesn't actually seem to make sense.

Maybe Sears' real position is "If these guys jump ship then the value of our stock will plummet and a few very rich and influential people will lose a lot of money because they couldn't dump their shares in time.".

Whaddayou think?

Yeah; Merry Christmas.

All the Bob Cratchits are getting coal in their stockings
 

jimbo

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I don't get this at all. You may have a valid contract, but if there is no money to pay the bills, then you stand in line along with the rest. Secured creditors first. Everybody else second.
 

TU Curmudgeon

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Yeah; Merry Christmas.

All the Bob Cratchits are getting coal in their stockings

As long as you remember that Ol' Bob had to pay for coal himself, your analogy is a good one.
 

TU Curmudgeon

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I don't get this at all. You may have a valid contract, but if there is no money to pay the bills, then you stand in line along with the rest. Secured creditors first. Everybody else second.

Not if the court says differently.
 

PIPEWRENCH

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This is nothing new. Remember the big shots who got bonuses for bringing about the financial bust?
Typical crap from those who can get away with it. Who can stop them?

We the people could stop it if we took back our government from them. Unfortunately we continue to be party sheep pulling the party lever electing their bought and paid for candidates. Maybe 1 day we will be smart enough to take our government from the rich and powerful. Until then all we can do is keep pointing our fingers at each other and blaming the other party while the puppet masters keep laughing all the way to the bank.


bush clinton.jpg
 

marke

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From CNN

Bankrupt Sears wants to give executives $19 million in bonuses


New York (CNN Business)Sears is seeking court approval to pay executives as much as $19 million in quarterly bonuses while the company struggles to restructure in bankruptcy.

Three top executives could get nearly $1 million each if the company goes out of business. If Sears remains in business, they could get nearly $500,000 each for hitting the top performance targets.

Sears filed two different types of bonus plans in bankruptcy court Thursday. The first is for the top 18 "key" executives, who would collectively get as much as $2.1 million per quarter. The bonuses would only be paid in full if Sears reaches its cash-flow targets. Sears Holdings, which includes both Sears and Kmart, has been burning through cash at a rate of about $125 million a month.

A second retention bonus plan was designed to encourage 322 other unnamed executives to stay put during Sears' reorganization. They would collectively get $16.9 million a quarter, which works out to an average of about $52,000 per quarter per executive. No executive could receive more the $150,000 in bonuses for staying with the company during the bankruptcy process.

COMMENT:-

It appears that Sears' position is "It is essential to our financial health that we retain the services of these executives whose decisions drove us into bankruptcy in the first place.".

Some how, that doesn't actually seem to make sense.

Maybe Sears' real position is "If these guys jump ship then the value of our stock will plummet and a few very rich and influential people will lose a lot of money because they couldn't dump their shares in time.".

Whaddayou think?

Big executive bonuses are a sore point among poor Americans, especially democrats. However, I admit I was sore that so many top executives were made to forfeit their bonuses as a result of the 2008 Wall Street collapse while Franklin Raines was allowed to keep his $100 million government bonus after cooking the books at Fannie Mae and doing more than any other single executive in the country to bring down Wall Street.
 

TU Curmudgeon

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Big executive bonuses are a sore point among poor Americans, especially democrats. However, I admit I was sore that so many top executives were made to forfeit their bonuses as a result of the 2008 Wall Street collapse while Franklin Raines was allowed to keep his $100 million government bonus after cooking the books at Fannie Mae and doing more than any other single executive in the country to bring down Wall Street.

Good point.

Unfortunately, in the cases you refer to "forfeit" was defined as "come back for them later when the stench dies down" - which is exactly what happened.
 

MTAtech

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Hey, the deserve that money. It wasn't easy driving one of the oldest American icons into bankruptcy.
 

Rexedgar

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Reminiscent of the Enron collapse; the muckety-mucks sold their stock and the rank and file were prevented from selling and watched their retirement circle the drain.
 

ElChupacabra

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From CNN

Bankrupt Sears wants to give executives $19 million in bonuses


New York (CNN Business)Sears is seeking court approval to pay executives as much as $19 million in quarterly bonuses while the company struggles to restructure in bankruptcy.

Three top executives could get nearly $1 million each if the company goes out of business. If Sears remains in business, they could get nearly $500,000 each for hitting the top performance targets.

Sears filed two different types of bonus plans in bankruptcy court Thursday. The first is for the top 18 "key" executives, who would collectively get as much as $2.1 million per quarter. The bonuses would only be paid in full if Sears reaches its cash-flow targets. Sears Holdings, which includes both Sears and Kmart, has been burning through cash at a rate of about $125 million a month.

A second retention bonus plan was designed to encourage 322 other unnamed executives to stay put during Sears' reorganization. They would collectively get $16.9 million a quarter, which works out to an average of about $52,000 per quarter per executive. No executive could receive more the $150,000 in bonuses for staying with the company during the bankruptcy process.

COMMENT:-

It appears that Sears' position is "It is essential to our financial health that we retain the services of these executives whose decisions drove us into bankruptcy in the first place.".

Some how, that doesn't actually seem to make sense.

Maybe Sears' real position is "If these guys jump ship then the value of our stock will plummet and a few very rich and influential people will lose a lot of money because they couldn't dump their shares in time.".

Whaddayou think?

It's all comical. The CEO of my former employer did nothing to improve the company's media strategy but left with a multi million dollar parachute payment.
 
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