Thursday, July 26, 2012
Former Kodak Employees Object to Executive Bonuses
Former Kodak employees are asking the bankruptcy court not to let Kodak executives receive $8.8 million in bonuses, according to the Wall Street Journal (WSJ). These employees do not want their pensions to be affected by the executives' bonuses, according to the article.
Earlier in July, Kodak asked the bankruptcy court if the company could pay nine of their top executives and some managers a bonus if these employees are successful in restructuring the company and paying back creditors. These employees are considered a key element in restructuring the company.
Some of the former employees feel it is unfair to pay executives whom they feel are partly responsible for the company's bankruptcy. They wrote letters to be included in the bankruptcy docket.
According to the WSJ, Kodak's Chief Executive Antonio Perez could get a bonus amounting to as much as 200 percent of his salary, and the Chief Financial Officer's would be 178 percent of his salary. Apparently, these bonuses are backed by the people representing the company's unsecured creditors. The bonuses would be an incentive for the managers and executives to pay back creditors.
To learn more about filing for bankruptcy, please contact an experienced attorney in your area.