Sears execs will receive up to $ 25 million in bonuses even if the company is bankrupt
(CBS) – Work for a bankruptcy trader still has it perks – at least if you are among hundreds of senior employees at Sears Holdings.
The company behind the Sears and Kmart chains on Friday received a US bankruptcy license to pay as much as $ 25.3 million in bonuses to senior executives and other senior employees at Sears who filed for Chapter 11 bankruptcy protection in October.
The negotiator has benefited from the fact that it needs to give employees an economic reason to stick, even as the reported loss of almost $ 1.9 billion in the first three quarters of this year.
"Under these circumstances, it would be understandable if many key people ask themselves if they should seek other opportunities," Sears said in a court that sent last mont h. However, the dealer can not afford this uncertainty, but understandably it may be . The company
The referee gave the green light to Sears's proposal that it offers bonuses of up to $ 8.4 million to 19 leaders if Sears meets any financial goals over the next six months. These workers will be eligible for extra money if Sears is positioned to achieve these goals when sold, said a lawyer for Sears during the hearing, according to the Chicago Tribune.
Sears also received approval to earmark up to $ 16.9 million in retention bonuses for another group of 315 elderly employees, each with a 30 percent to 40 percent share of wages, broken down by quarterly payments in the next year.
Former CEO Eddie Lampert is still Sears manager, and his hedge fund, ESL Investments, recently offered to acquire what remains of the company, which is currently in the process of liquidation. The once dominant retailer has been anchoring stores and outsourcing employees, with around 500 stores still in operation.
In a silver liner of variety, Sears reported an increase of 4.3 per cent sales during the quarter at Sears and Kmart stores for at least one year, with increased sales "driven by liquidation sales in stores announced for closure, "Sears said in a regulatory archive on Thursday.
