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A judge in the Hostess bankruptcy approves a $1.8M payment in bonuses for Hostess Brands...

A judge in the Hostess bankruptcy approves a $1.8M payment in bonuses for Hostess Brands executives. The bigger issue: After the formalities of the bankruptcy case peel away, a potential goldmine of well-known brands could spur a bidding war. The word from one of the company's bankers in courtroom testimony was that calls have been coming in "fast and furious" and a stalking horse bid could be in place by mid-January.
Comments (11)
  • Such garbage. Company goes bankrupt and you get bonused... LOL
    29 Nov 2012, 03:37 PM Reply Like
  • Who do they think they are, bankers?

     

    I agree...........I like how they try and blame the baker's union also for the bankruptcy, then award bonuses for failure.
    29 Nov 2012, 03:44 PM Reply Like
  • Sure, $1.8 million is what is bankrupting the company. It has nothing to do with the hundreds of millions that the unions demanded in pension and healthcare benefits, those are just chump change compared to $1.8 million!
    29 Nov 2012, 04:38 PM Reply Like
  • Dont make me research how much the top executives get paid or you will be embarrassed.
    29 Nov 2012, 04:39 PM Reply Like
  • Actually, I've already done that research.
    http://bit.ly/V6QdlS

     

    The prior CEO jacked up his own pay and the pay of the top executives, but when he left the company, the new CEO, along with the top executives, all took $1 per year, and the rest of the executives returned to previous pay rates.

     

    Do you know if Hostess bakes Humble Pies? You could probably use a slice of it.
    29 Nov 2012, 04:50 PM Reply Like
  • Well then, you pretty much did the work for me, thank you. A 300% raise, that will about prove my point. 1$ salary? Did you read the same article you linked? According to your link, the execs did this because the WSJ threw the penalty flag which almost forced the execs to take the cut to save face. The execs were over payed and recieved HUGE pay increases...why? The company surely wasn't doing well- They were over payed. period.
    29 Nov 2012, 04:57 PM Reply Like
  • bbrady: They lowered their pay AFTER it became public and that it was to be temporary until chap 11 was done or the end of the year hit, whichever came first so in reality it was 6 months of reduced pay.
    Reduced pay covered by a bonus.
    29 Nov 2012, 06:31 PM Reply Like
  • You obviously didn't read past the first few lines. The old CEO, Driscoll, raised his own pay, along with the rest of the top executives. He left, and the restructuring CEO, Rayburn, came in and slashed everyones pay, including his own.
    29 Nov 2012, 07:33 PM Reply Like
  • What part of my post saying "They lowered their pay AFTER it became public and that it was to be temporary until chap 11 was done or the end of the year hit" made you think that I missed the part of their lowered pay?
    You have a lot of gall telling other people they didn't read when you arent even reading our comments.
    29 Nov 2012, 08:03 PM Reply Like
  • My point is NOT that $1 million here and there in high exec pay directly caused the bankruptcy .
    My point is why would did the executives reward themselves with juicy raises when the company wasn't doing well, and then a bonus in bankruptcy court to basically offset the $1 temporary pay they took to save face?
    A well run company compensates the board and CEO in accordance to their performances.... When the company clearly is having trouble or in bankruptcy court, the last thing execs deserve is a bonus.
    29 Nov 2012, 08:30 PM Reply Like
  • It pays to go bankrupt.
    29 Nov 2012, 03:43 PM Reply Like
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