Borders, in bankruptcy, plans to pay $8.3 million in bonuses

[Bozita]

Source: Bloomberg

Last Updated: March 25. 2011 2:02PM
Borders, in bankruptcy, plans to pay $8.3 million in bonuses
Linda Sandler and Tiffany Kary / Bloomberg News


Borders Group Inc., after filing for bankruptcy in February with plans to close about a third of its stores, said it plans to pay key employees as much as $8.3 million in incentives and retention bonuses.

The second-biggest U.S. bookstore chain asked a judge to approve its plan in a filing yesterday in U.S. Bankruptcy Court in New York, saying it historically compensated employees through incentives.

The main awards would be part of a program budgeted for as much as $7.1 million. The size would be calculated after the company files a reorganization plan or gets approval for a sale of the company, Borders said. The rest of the money is budgeted for retention bonuses, it said.

Under the incentive program, Borders President Michael Edwards, chief executive officer of the chain's parent company, Borders Inc., would get as much as $1.7 million in bonuses, according to the filing. "Award opportunities" under the plan would be 150 percent of historical levels for the company's incentives, it said.

Read more: http://detnews.com/article/20110325/BIZ/103250440/Borders--in-bankruptcy--plans-to-pay-$8.3-million-in-bonuses#ixzz1Hdni2Ioq

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I'm shocked, shocked I tell you!

[CBGLuthier]

1. You have to pay retention bonuses no matter what

If everybody leaves the company they may as well just close forever.

[forty6]

2. We must well-compensate those execs for steering the company into

bankruptcy! And they get paid for all those jobs they trashed, why?

Then, of course, those execs and everyone else will collect unemployment compensation for up to a year, why?

The store workers deserve Unemployment, of course, but those execs? I would pass a law that no one who gets a million $ bonus can collect one cent of U C.

[rfranklin]

17. I hate to break this to you...but those guys don't care about Unemployment Insurance....

You expect someone of their stature to file for unemployment?

[no_hypocrisy]

3. Wait a minute. Borders is merely making an application. The B-ruptcy judge may

well deny their request. Creditors are primarily given distribution of assets and bonuses don't easily fall into that category. Don't forget the creditors will be paid pennies on the dollar of what they're owed. They will protest knowing that they could have been paid more if bonuses were not paid.

[Blue Owl]

4. That's the way...

Corporate America likes it,
uh huh, uh huh...

[hatrack]

5. Talent like that just HAS to be rewarded!

:puke:

[defendandprotect]

6. What we're left with in central NJ is Barnes & Noble and they're pushing electronic books ...

so basically they're putting themselves out of business --

but the BOOK has to remain something held in your hand -- not hackable!!

Bookstores in small towns are still around -- but rarely do they carry a huge

variety of books -- tho they'll get you anything you want.

That's not to say that Barnes & Noble any longer has huge variety of what's being

published -- especially more awakening books. Lots of stuff disappeared.

Especially feminism and world history -- not written from a white male propaganda perspective!


PS -- and certainly all of our libraries are under attack from rightwing --

Any doubt they'll be burning books for Koch soon?

[Octafish]

7. Worked for Wall Street.

Let's be fair.

[Cass]

8. Pretty nice gig if you can cash in with a $1.7 million bonus for putting the company in bankruptcy.

I guess talent like that is worth millions. Meanwhile how many low wage employees will be left jobless while "key" employees rake in the dough??

:eyes:

[Snoutport]

9. pretty sickening

but walker or scott will probably hire the guy to run the school systems or something...he'll do ok.

[Highway61]

10. WTF

n/t

[Quantess]

11. What's wrong with you liberals? It's called rewarding success.

...oh, wait......

[ladywnch]

12. can the bankruptcy court void those bonuses? n/t

[xxqqqzme]

25. They can be denied but

rarely are. It is all about 'contractual' agreements between parties. Those high end contracts are recognized by judicial proceedings. However a state's contracts w/ union employees can be ignored w/ the stroke of a governor's pen - low end. See how that works.

[HCE SuiGeneris]

13. Another WTF moment brought to you by the United Corporotocracy of America

[old mark]

14. K&R- Of course-top people like that command proper compensation or they

would work elsewhere...where would Borders be then?


mark

[postulater]

15. My head! It's spinning!

[madrchsod]

16. it`s up to the judge whether or not they get the money

and it depends what type of petition they are filing. from my experience bankruptcy judges are strictest of all the judges i have encountered.

[russspeakeasy]

18. They should pay them in magazine subscriptions.

[Cal Carpenter]

19. The execs are sucking all the money out of that place before it goes under.

[Starry Messenger]

20. Shittiest job I ever had.

The employees were nice, but the company management practices were awful. It sure as shit wasn't compensating the rank & file with "incentives".

[Faygo Kid]

21. K&R. Not surprising.

There goes my business.

[Bozita]

22. more info from annarbor.com ...

http://www.annarbor.com/business-review/borders-wants-bankruptcy-court-to-approve-up-to-83-million-in-executive-bonuses/

-snip-

The court papers also reveal that Borders has not given raises to the corporate employees at its Ann Arbor headquarters in four years.

The bonuses would be split into two segments: up to $7.1 million for 17 of the company's top executives and $1.2 million for 25 other "director-level" employees. The bonus for Mike Edwards, CEO of Borders Group subsidiary Borders Inc., could be as much as $1.68 million. The company's executive vice presidents could get up to $1.08 million.

The bonuses would be distributed if Borders:

• Can convince the bankruptcy judge to approve a reorganization plan that involves the company's survival. For the top executives, the bonuses are also tied to the company's ability to get the plan approved within five months of its submission.

or

• Successfully attracts a buyer that would continue to operate the company.

-snip-

more...

[OhioChick]

23. Fucking criminals n/t

[lonestarnot]

24. No bk judge will let that happen.

[Dappleganger]

26. I'm sorry, but if the company has to file bankruptcy under your watch you don't deserve

any fucking bonus.