BANKRUPT ALLEN’S EXECUTIVES WANT BONUSES

After almost a century in the poultry business, Allen Family Foods, which recently filed for bankruptcy is seeking a judge’s permission to pay its’ executives up to $200,000 in bonuses to complete a sale of the company that will result in 1,600 people losing their jobs.

 Takes you back to when the big banks were near bankruptcy or merging and gave their top employees huge bonuses while the U.S. taxpayer gave them money to help them stay afloat.  For CEO’s who mismanage their companies those large bonuses sometimes in the millions is called a ‘parachute’.

Allen’s reasoning for the bonuses; the executives are responsible for the operation of Allen’s business through bankruptcy and for overseeing the transition of assets to a buyer according to court documents.

A bankruptcy lawyer said these types of incentives plans aren’t typical in bankruptcy cases, but they are not uncommon.

My question to the Allen organization. Your employees who are staying until the end keeping the company alive so the assets don’t lose value during this transition; what are they getting in incentives for staying except a pink slip?

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5 thoughts on “BANKRUPT ALLEN’S EXECUTIVES WANT BONUSES

  1. These type things make my blood boil. You reveice a paycheck for operating the business, be it through bankruptcy or whatever else. You recieve a bonus for exceeding expectations, being profitable and having the wisdom to keep your company solvent through changing markets. Shame on them for asking, and shame on the judge if it’s granted. Definitely a slap in the face to the 1600, and all hard working people.

  2. How many of these executives are actually in the Allen Family and actually show up for work, or are they just a position that gets a check. I would hope a judge when look at this before making any decision. Somewhere along the line it has became the norm to give a bonus or “parachute” to people even if they did not do a good job. If they have this much money available why not set up some type of job fair to help all those loosing their job. There better uses for the money than paying a bonus to an executive, I guess it will be hard for an executive to find another job around here that pays the same, oh well.

      • Frank, I for one and I know a few more that would be glad to hire people if we could find a good qualified person that actually wants to work. Every time I run a ad for help wanted I get people who just stop in to have their slip signed that says they applied so benefits can continue. I refuse to sign them. The the ones with any type of qualifications no matter how small, want to make $75000 a year and work le4ss then 40 hours a week. Dont even think about asking about Saturdays. So jobs are available but you better want to work for your pay. None of us can have any fat in the workplace any more so either earn what you get or dont apply.

      • Your post reminds me of a young person who came into my store asking if I was hiring and I spoted one of thos unemployment slips in his hand. Although I wasn’t hiring, I told the person I was; they soon exited the store. The word ‘work’ takes on a whole new meaning with todays work force. I had a yhoung man wanting to learn the shoe repair trade, out of work. Hired him at minimum wage, he did barely nothing the first week but watch me. Mind you the entire week he never took off an old pair of heels from a pair of shoes. Paid him for the week. He comes in Monday morning and tells me he can’t afford to work that cheap. I guess he wanted my salary at the start and a pay raise later.

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