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?