Hostess Executives Want to Give Themselves a $1.8 Million Bonus

Categories: Biz, Legal Battles

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In recent months, Hostess' corporate leaders have struggled valiantly to save the Twinkie. That they didn't succeed goes to show not that the company utterly failed to adapt to a changing market but that they simply couldn't overcome the mighty power of a union bent on destroying an American icon. (Or not).

It's only fitting, then, that those leaders should be rewarded for their tireless work, and that's exactly what Hostess hopes to do. In a filing in federal bankruptcy court, the company asked permission to provide $1.8 million in bonuses to 19 top-level executives.

It's just a teensy sliver of Hostess' revenue and, as Hostess spokesman Lance Ignon explained to the Los Angeles Times, those are talented, hard-working individuals who might seek other jobs if not given an incentive to stay.

And those people are vital to help wind the company down and deal with the 100-plus bidders vying for a piece of the company, unlike those 15,000 rank-and-file employees who were given the boot.

Update: The judge approved the bonuses.


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23 comments
ruthellaowens
ruthellaowens

Have you noticed that the judges are going along with this crap? It is just a dog and pony show. Why do they even keep up the pretense? Unions have been decimated...I worked in banking. We had no collective bargaining. Had the lowest salaries though...How about no executive contracts? You work day to day like I do.

okcufar
okcufar

970000$$ if divided evenly. Hummm. That to walk away with as a bonus for lack of acountability. Must be milarary bound next only government worjers can do so little for so much and sendthe bill uo the channels. Discusting at best

Tom434
Tom434

They just don't get to do this the Judge has the final word and I'm sure somebody will oppose it.

ScottsMerkin
ScottsMerkin topcommenter

I worked for a company that filed Chapter 7 and let me tell ya, it aint the execs that help wind down the place.  Its the peon cubicle worker who they keep on to continue to answer phones from angry vendors who wont get paid and try to collect the AR on the books that these EXECS want to take their bonuses from that do.  The only bright side I got from that was that if we collected certain amounts we got a bonus (actually left with a bonus check of $4k, a small pittance when being put out of work.)  

Myrna.Minkoff-Katz
Myrna.Minkoff-Katz topcommenter

After running the company into bankruptcy, the first order of business is a big payout to executives.

kfries1
kfries1

While you're making a big deal over the amount, it's actually a lot less than Enron execs got and they actually created nothing and sold questionable services. But even so, I'd still side with those who think that not only no bonus but a pay cut. The latter might seem a little severe and I'd agree but they're already looking for the next victim or have their golden parachute set up. What really ought to cause an outrage is how they mishandled a business for so many years and the transparent ploy to smear everyone else. I'm sure there will be a nice article, book or study to show just how badly the money was squandered, how it was squandered and to whom.

everlastingphelps
everlastingphelps topcommenter

$97 an employee.  Not even enough to keep the bakeries running for a morning, much less another day.

albert.finney000
albert.finney000

Maybe those guys kept the company alive for a few years longer than other less competent folks would have, and maybe they'll get new jobs based on that. How many of you have actually hired anyone? I've been in three great companies that failed eventually but never had a prob getting hired elsewhere. Things can be a little more complicated than they appear.

Montemalone
Montemalone topcommenter

So the talent that drove the company to bankruptcy needs a bonus or else they're gonna go elsewhere. 

Just who is gonna hire them?

Interviewer: Where did you work before?

Former Twinkie Exec: Hostess

Interviewer: What did you do there?

FTE: I drove them to bankruptcy

I: You're hired!

engmofo
engmofo

Shame ,what shame ,I 'ain't got no shame........

albert.finney000
albert.finney000

@ScottsMerkin -Been there, done that with a company funded by two Ex-Dallas mayors. I hadda literally turn out the damn lights. Wasn't their fault, the CEO was an idiot, and I dunno what he walked away with

MisterMean
MisterMean

We reward failure.   We embrace grand failure.

albert.finney000
albert.finney000

And most often those bonuses are part of contract, and the targets were met even though the the company failed. People get highly paid for a reason.

PaulRiddell
PaulRiddell

Why not? That's what Borders's second-to-last CEO did, and promptly drove A&P further into the toilet. (I'd also like to note that in Borders's case, the execs cried that they needed the executive retention bonuses to keep their geniuses on board during their Chapter 11 bankruptcy, and the bankruptcy judge agreed, but the bonuses could only be paid if they brought Borders out of bankruptcy. It's absolutely amazing, though, that when Borders went Chapter 7 and liquidated, those same execs demanded, and got, the bonuses they swore they wouldn't touch if the company went under. Employees got screwed, suppliers were screwed, and publishers might get paid pennies on the dollar for all of the inventory that Borders used to pay those bonuses.)

albert.finney000
albert.finney000

@Montemalone - you sure seem privy to a lot of insider info, amigo. Was this a conspiracy of those evil one percenters?

ruthellaowens
ruthellaowens

@albert.finney000 Been there, done that also...GRAND BANKSHARES, Mayor Jack Evans' sons owned the place. We became wards of Comerica Bank. We were just there make the sale look good. A bonus to us would have been $500.

albert.finney000
albert.finney000

@PaulRiddell - Moonbeam was elected California CEO again, how are their finances?

albert.finney000
albert.finney000

@Scruffygeist @albert.finney000 - the company I mentioned above in my reply - when I left, I was hired by another in 3 days even though I was top operations guy, #3 in the pecking order of that failed company.

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