Circuit City wants to pay execs bonuses

[min0 lee]

Circuit City wants to pay execs bonuses | InsideNova.com


Wire Reports
Published: February 10, 2009
Circuit City Stores Inc., now liquidating the last 567 of its 721 stores, says incentive bonuses are needed to dissuade 154 executives and other workers from leaving before the company is dissolved.
Bloomberg News reported today that the Henrico County-based Circuit City???s proposal came in a motion filed in federal bankruptcy court in Richmond.
Circuit City proposed that 16 executives would split $2.3 million if they all achieve their targets, and the remaining non-managerial workers would be in line for $1.62 million if the bankruptcy judge goes along with the idea at a Feb. 25 hearing.
Circuit City also wants an additional $750,000 to distribute as discretionary bonuses to the non-management workers and others who aren???t covered by the program.
Circuit City was the second-largest electronics retailer in the U.S. when it filed under Chapter 11 in November. The final going-out-of-business sales were approved in January.
In all, the company will cut about 34,000 employees by the time the liquidation process ends by the first of April. A skeleton crew will stay on for as long as two years to finish winding-down operations.
Circuit City???s bankruptcy petition listed assets of $3.4 billion and debt totaling $2.3 billion as of Aug. 31. Papers show $898 million owing to the secured revolving credit lenders. Unsecured trade suppliers are owed another $650 million, the company said in a court filing.
???Bloomberg News

 

[min0 lee]

I know it's not the same but my co-worker filed for bankruptcy a while back, she told me that her lawyer advised her to max out her credit cards before he filing for bankruptcy.

 

[maniclion]

Fuck them 16 get $140k because they couldn't manage the company and now it's bankrupt while the 138 split 1.6mill and then the people who actually labored for that ShitPot overpriced store and will lose the most might get a "discretionary" tiny chunk of 750k

Those executives have more money stashed away for a rainy day than most of the worker bees will get in a decade or maybe in their lifetime. One or two of those Execs might lose a vacation home in this hard economic time while several of the grunts may lose their only home or end up on the street.....
Given the times we are in those execs are more likely to stash away most if not all of that bonus in a foreign bank. It's almost guaranteed that the lower and middle class workers would spend it most likely by paying off their own debts and helping out the economy....

I'd rather see money continue to circulate than see it sent away to sit dormant in limbo because some rich asshole thinks he can take it with him when he's dead.....

 

[bio-chem]

let the fuckers leave early. in this job market is there a lot of positions open for retarded executives that ran their last company into the ground?