Whoa. This is disgraceful. From Twitter:
@CNBC: BREAKING: Judge approves Hostess bonus payout plan; 19 Hostess senior executives in line for up to $1.8M in bonuses
The Teamsters stridently objected. From the court filing:
...there is no basis under any possible standard of review, including business judgment or “justification by the facts and circumstances of the case,” 11 U.S.C.§ 503 (c)(3), for the Court to conclude that the requested payments should be approved. This is particularly true in these tragic circumstances where so many thousands of employees have lost their jobs and benefits, and where remaining non-senior management employees will receive an incentive payment of no more than 25% of their compensation during the wind down period.
Our attorneys argued that the bonuses are against the law:
The Debtors, however, have failed to demonstrate that the proposed bonuses are true incentive bonuses and not disguised retention payments in violation of section 503(c)(1) of the Bankruptcy Code.
Just disgusting.
