NEW YORK (CNN Business) — Sears is seeking court approval to pay executives as much as $19 million in quarterly bonuses while the company struggles to restructure in bankruptcy.
Three top executives could get nearly $1 million each if the company goes out of business. If Sears remains in business, they could get nearly $500,000 each for hitting the top performance targets.
Sears filed two different types of bonus plans in bankruptcy court Thursday. The first is for the top 18 "key" executives, who would collectively get as much as $2.1 million per quarter. The bonuses would only be paid in full if Sears reaches its cash-flow targets. Sears Holdings, which includes both Sears and Kmart, has been burning through cash at a rate of about $125 million a month.
A second retention bonus plan was designed to encourage 322 other unnamed executives to stay put during Sears' reorganization. They would collectively get $16.9 million a quarter, which works out to an average of about $52,000 per quarter per executive. No executive could receive more the $150,000 in bonuses for staying with the company during the bankruptcy process.
A judge's approval is needed before the bonuses could be paid. A hearing on the plans is set for Dec. 20.
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13 comments:
Employees who are looking for their Sears pensions need look no farther than the management giveaways like these to know where their pension $$ go.
This is the biggest reason most people hate big business executives. They screw the little guy while lining their own pockets.
Sounds like the USPS. Everytime they go to Congress for a bailout they in turn have given out 200 million plus in bonuses to mid level and up managers. When are we as a nation going to take back our country?? This IS the very reason their so hell bent on disarming citizens
10:38 that is becasue you people are to stupid to know any better.. you just sit there and ask for more and more taxes so these companies can do thee things to people... Then you get on here and complain how you don't like what you help create... Funny how that works right???
Are you calling for citizens to arm themselves and shoot lawmakers & business executives? I’m pretty sure their some pro-gun owners that are receiving these bonuses.
Time for the Salisbury Sears to go bye bye
Stop complaining and become executive
Americana AND Capitalism at its worst!
I'm calling for citizens to band together and put a stop to government theft at our expense and at ANY means necessary
Sears was once the largest retailer in the world and they let a little mom and pop business from Arkansas put them right out of business,and those idiots that made stupid decisions want bonuses?
Was at the Centre of Salisbury Mall on Friday and went into Sears to see what they had for Christmas. Was totally depressing. I went there around 2pm. There many people in mall, but only a handful in Sears.
Totally depressing!
There was no electronics, and the few if any clothing or shoes for men.
Instead of electronics, there was bedding. Wasn't much to see in Appliances either!
Sad end, to what was once a great store.
I doubt that they will be around much longer after Christmas is over.
Why work at Sears when you can help your employer go belly up and then get a full pension like USPS?
Dave T: But don't worry about the working class that sacrificed and struggled for the benefit of keeping a job and keeping the business alive. Just reward the top micro managers, no wonder they're bankrupt - it matches their values - which are also bankrupt!
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