ONTD Political

Judge Approves Up To $1.8 Million In Bonuses For Hostess Executives

5:41 pm - 12/02/2012

Hostess In Talks With 110 Potential Buyers For Its Product Lines

NEW YORK (CBSNewYork/AP) – Hostess Brands Inc. got a judge’s approval to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans.

The maker of Twinkies, Ding Dongs and Ho Hos said the incentive pay is needed to retain the 19 corporate officers and “high-level managers” during the liquidation process, which could take about a year.

Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation. The bonuses would be in addition to their regular pay.

The bonuses do not include pay for CEO Gregory Rayburn, who was brought on as a restructuring expert earlier this year. Rayburn is being paid $125,000 a month.

The bakers union, Hostess’ second-largest union, also asked asked the judge to appoint an independent trustee to oversee the liquidation, saying that the current management “has been woefully unsuccessful in its reorganization attempts.”

Hostess also said it’s in talks with 110 potential buyers for its product lines — including Twinkies, Ding Dongs and Ho Hos.

A financial adviser for the company said in bankruptcy court that the suitors now include at least five national retailers. He says the buyers are “serious” and that they are ready to pay “substantial” amounts.

Last week, the judge approved the company’s request to begin winding down its operations, giving Hostess the green light to begin terminating about 18,000 jobs and selling off its brands.

An attorney for Hostess noted that the company is no longer able to pay retiree benefits, which come to about $1.1 million a month. Hostess stopped contributing to its union pension plans more than a year ago.

Hostess sales have been declining over the years, but still come in at between $2.3 billion and $2.4 billion a year, a banker for the company said in court last week.

“Sales are not the issue,” Rayburn told WCBS 880′s Irene Cornell earlier this month. “It’s the cost structure and if you can’t sell it at a profit, then you’re not in business.”

Hostess has been spending about $1 million a day in payroll without any income since it halted operations.

hinoema 3rd-Dec-2012 03:44 pm (UTC)
I thought bonuses were for going above and beyond, not for, you know, egregiously fucking up. *The more you know*
shadwing 3rd-Dec-2012 04:17 pm (UTC)
It's also an out and out bribe. When Companies go under, people will bail as soon as they see something else out there.

The bonus might be tied to a contract/severance, stay till the bitter end and you'll get this cookie. they need the staff or at least a chunk of them to keep the place running till they shutter the doors.

At least I HOPE it's some sort of severance deal and not a REAL Bonus.
bnmc2005 3rd-Dec-2012 04:05 pm (UTC)
I hope this brings light on the fact that the CEOs and executives have been running this company into the ground for years— NOT THE UNIONS

A lot of people lost their jobs because of a horribly run business. That is the fucking tragedy here.

Edited at 2012-12-03 04:06 pm (UTC)
blackjedii 3rd-Dec-2012 04:08 pm (UTC)
Dear IRS:

tax the shit out of them
shadwing 3rd-Dec-2012 04:20 pm (UTC)
We can only hope that when the checks are cut...they are noted as 'Bonus' and get the higher tax rate..but if they are listed as 'salary/wages' they get the normal rates. At least I believe thats how it works.

I've been though a few layoff situations and that's part of the packet I got when I was offered severance, that part of my package was considered a 'bonus' and subject to a higher tax rate than my salary was.
kitanabychoice 3rd-Dec-2012 04:56 pm (UTC)
oh what the hell. your company files for bankruptcy twice and yet you still come out with millions in bonuses while other people just lose their jobs? that's just fucking gross.
skittish_derby 3rd-Dec-2012 05:33 pm (UTC)
a lot of those people lost their retirement funds too. D:
vulturoso 3rd-Dec-2012 06:19 pm (UTC)
I used to work in HR/Payroll and this is part of the reason I got out. My company wasn't going under, but during the recession there was a "freeze" in annual merit increases, while at the same time we'd be adding more VPs (all with signing bonuses, of course), and the existing executives would reward themselves with bonuses for basically doing their jobs.

It's disgusting and I was tired of seeing it all clear as day, knowing that everyone in the department was grossly underpaid and over-worked.
aviv_b 3rd-Dec-2012 06:49 pm (UTC)
Sounds like the judge is just another ding dong for sale.
layweed 3rd-Dec-2012 08:06 pm (UTC)
ho ho.
just_awkward 3rd-Dec-2012 09:50 pm (UTC)
I get a bonus of $100 a week if I stay through my store's liquidation. And the government will likely take half of it. But I probably would have stayed anyway since I can't collect unemployment if I quit.

Fuck these guys, seriously. And fuck everyone else worried about where they're going to get their precious twinkies.
lady_borg 3rd-Dec-2012 10:39 pm (UTC)
And fuck everyone else worried about where they're going to get their precious twinkies.

lady_borg 3rd-Dec-2012 10:38 pm (UTC)
The thing I can think off is that I am appalled workers are still going to fucking suffer and these gross over processed snacks are still going to be on the market.

Fuck these guys, I understand wanting to sell your wares but that money should be going to the workers comps funds not to save their pinstriped arses.
simply_blah 4th-Dec-2012 12:11 am (UTC)
I wonder if this wasn't somehow their goal. File Bankruptcy. Sell Hostess. Screw Workers. Get $$$$
alryssa 4th-Dec-2012 04:54 am (UTC)
The definition of vulture capitalism, basically. This is what companies like Bain do. All the time.
thevelvetsun 4th-Dec-2012 06:15 am (UTC)
Yay Capitalism!
This page was loaded Apr 27th 2018, 12:59 am GMT.