Judge OKs Furniture Brands bonuses, retention pay
In what’s sure to rile many folks at Furniture Brands International, a bankruptcy judge in Delaware on Friday approved bonuses and incentives for unnamed company employees and key personnel as it battles through Chapter 11 bankruptcy.
The bankruptcy trustee overseeing the case last week objected to the proposed bonuses, but the judge on Friday said the pay was appropriate.
And let it be known that, while controversial, the bonus and incentive pay isn’t unusual in a bankruptcy case.
The bonuses to seven unnamed executives and corporate directors was capped at $3.5 million.
According to the Winston-Salem Journal, “the bonus amounts could range from a combined $375,000 to $1.7 million for achieving each of two financial targets: a successful sale of the company’s line of business at a set price level; and keeping and/or enhancing the company’s financial condition by meeting liquidity goals.”
Meanwhile, a retention plan to keep 48 key employees adds another $2.1 million.
The judge also approved a $144.5 million bankruptcy loan for Furniture Brands.