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NEW YORK (AP) -- Hostess Brands Inc. plans to ask for a judge's approval Thursday 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 says the incentive pay is needed to retain the 19 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 true perfidy in this drama is not in the union, but inside Ripplewood's towering castle of high finance in New York City. After buying Hostess in a bankruptcy sale, these equity hucksters proceeded to feather their own nests, rather than modernize Hostess's equipment and upgrade its products, as the unions had urged. For starters, these profiteers piled an unbearable debt load of $860 million on Hostess, thus diverting its revenues into nonproductive interest payments made to rich, absentee speculators. Also, they siphoned millions of dollars out of Hostess directly into their corporate pockets by charging "consulting and management fees" that did nothing to improve the snack-makers financial health.
But it was not until this year that their rank managerial incompetence and raw ethical depravity fully surfaced. While the Ripplewood honchos in charge of Hostess were demanding a new round of deep cuts in worker's pay, health care, and pensions, they quietly jacked up their own pay. By a lot! The CEO's paycheck, for example, rocketed from $750,000 a year to $2.5 million.
Originally posted by GreenGlassDoor
Your anti-business partisanship is showing.
These bonuses are retention bonuses to incentivize people staying who are over-seeing the liquidation of Hostess assets to pay creditors. Why else would these people stay rather than find another job?
If everyone left, and the assets were left to rot, then creditors could take the corporate board to court. That is why you must go to court when filing for bankruptcy: it is a settlement that has the legal backing of a court order that provides protection to prevent needless lawsuits and simplify the process.
bonuses are retention bonuses to incentivize people staying who are over-seeing the liquidation of Hostess
Originally posted by GreenGlassDoor
Your anti-business partisanship is showing.
These bonuses are retention bonuses to incentivize people staying who are over-seeing the liquidation of Hostess assets to pay creditors. Why else would these people stay rather than find another job?
If everyone left, and the assets were left to rot, then creditors could take the corporate board to court. That is why you must go to court when filing for bankruptcy: it is a settlement that has the legal backing of a court order that provides protection to prevent needless lawsuits and simplify the process.
Originally posted by GreenGlassDoor
Your anti-business partisanship is showing.
These bonuses are retention bonuses to incentivize people staying who are over-seeing the liquidation of Hostess assets to pay creditors. Why else would these people stay rather than find another job?
If everyone left, and the assets were left to rot, then creditors could take the corporate board to court. That is why you must go to court when filing for bankruptcy: it is a settlement that has the legal backing of a court order that provides protection to prevent needless lawsuits and simplify the process.
Originally posted by redtic
Originally posted by GreenGlassDoor
Your anti-business partisanship is showing.
These bonuses are retention bonuses to incentivize people staying who are over-seeing the liquidation of Hostess assets to pay creditors. Why else would these people stay rather than find another job?
If everyone left, and the assets were left to rot, then creditors could take the corporate board to court. That is why you must go to court when filing for bankruptcy: it is a settlement that has the legal backing of a court order that provides protection to prevent needless lawsuits and simplify the process.
I was going to respond similarly - it comes out to roughly 95k per manager over the course of the year, which I suppose is reasonable. But my question would be - why does it take 19 people an entire year to "wind down" the company?
Originally posted by fnpmitchreturns
Originally posted by redtic
Originally posted by GreenGlassDoor
Your anti-business partisanship is showing.
These bonuses are retention bonuses to incentivize people staying who are over-seeing the liquidation of Hostess assets to pay creditors. Why else would these people stay rather than find another job?
If everyone left, and the assets were left to rot, then creditors could take the corporate board to court. That is why you must go to court when filing for bankruptcy: it is a settlement that has the legal backing of a court order that provides protection to prevent needless lawsuits and simplify the process.
I was going to respond similarly - it comes out to roughly 95k per manager over the course of the year, which I suppose is reasonable. But my question would be - why does it take 19 people an entire year to "wind down" the company?
SO, failed company executives should get $95K to end their own jobs? I think it is funny that people actually believe this is acceptable on any level....
The court can dispose of the assets .. why do you need company managers execept for a few months of wind down....
Originally posted by GreenGlassDoor
reply to post by fnpmitchreturns
More platitudes than fact in your comment. Hostess was a cultural institution, but it was dragged down by the unions.
Thus your conclusion is false. They didn't mismanage the company, the Unions destroyed it. For instance Hostess bread could not be shipped on the same truck as cupcakes per the union. There were over 300 various agreements the Union had with hostess, which inflated the original price of pensions from $1K to $20k per year in employer contributions.
I am guessing your definition of "good of the people" is people robbing a company blind.
Originally posted by GreenGlassDoor
Your anti-business partisanship is showing.
These bonuses are retention bonuses to incentivize people staying who are over-seeing the liquidation of Hostess assets to pay creditors. Why else would these people stay rather than find another job?
If everyone left, and the assets were left to rot, then creditors could take the corporate board to court. That is why you must go to court when filing for bankruptcy: it is a settlement that has the legal backing of a court order that provides protection to prevent needless lawsuits and simplify the process.
Originally posted by GreenGlassDoor
So management finally ate what they were selling. However, the bakers union maintained their strike. baking is the heart of Hostess. Managment explicitly stated they cannot go on with the current agreement and the strike. They wanted to reduce wages and have employees pay 17% of their benefits
Those were the facts: hostess dies without reform. unfortunately the union was unwilling to compromise. The parent company did not Bain them. They lost $100 million so far on the deal
Here you are outraged that management will not continue to work for $1 while they liquidate.