OT: Bankruptcy Trustee Gives Dave Brandon a Lump of Coal

Submitted by Tasker Bliss on
From Reuters: A bonus plan for top executives at Toys 'R' Us "defies logic," according to the government's bankruptcy watchdog, who blasted the proposal that the retailer has argued will help boost earnings during its critical holiday shopping season. The plan would pay up to $32 million to 17 executives. "It defies logic and wisdom, not to mention the Bankruptcy Code, that a bankrupt company would now propose further multi-million dollar bonuses for the senior leadership of a company that began the year with employee layoffs and concludes it in the midst of the holiday season in bankruptcy," the office said in papers filed on Tuesday. "Apparently, this Christmas, Toys 'R' Us intends to deliver not only 'children their biggest smiles of the year' but the insiders, too," the office added, in a mocking reference to comments by Chief Executive David Brandon in court papers supporting his company's Chapter 11 petition.
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Dave Brandon

Perkis-Size Me

November 30th, 2017 at 4:50 PM ^

I'm all for free market capitalism, but even I think this is horseshit. Laying people off left and right, driving the company into bankruptcy, but still making sure you're walking out of all of this with a hefty Christmas bonus while your employees are wondering how much longer they'll last before they're laid off too. 

What a selfish prick. 

 

Joined: 11/30/2011

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ramenboy

November 30th, 2017 at 4:59 PM ^

I'm no legal expert, but isn't the purpose of bankruptcy court to ensure that the creditors with the highest priorty (i.e. senior debt holders) get paid as much as they can get?  I would imagine that if I was a creditor, I would want to put the kibosh on big bonuses to senior execs - especially if that means I'd be getting less.

Joined: 02/05/2013

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SFBlue

November 30th, 2017 at 9:39 PM ^

The trustee is an advocate, of course, and the BNKR Judge decides the ultimate issue here. As much as I hate corporate stoogery (and I for a living sue corporations) you need to provide * some * incentive to stick around for valuable executives.

Joined: 11/02/2009

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