Bloomberg reports that the bankruptcy judge overseeing the finances of the Great Atlantic & Pacific Tea Company (A&P) has approved the awarding of as much as $3.7 million in bonuses that could be paid to six senior executives based on company performance.
The United Food and Commercial Workers (UFCW) opposed the bonuses; the judge’s approval could complicate upcoming negotiations between management and labor, as A&P looks for concessions as executives look for a way out of the chain’s financial troubles.
The United Food and Commercial Workers (UFCW) opposed the bonuses; the judge’s approval could complicate upcoming negotiations between management and labor, as A&P looks for concessions as executives look for a way out of the chain’s financial troubles.
- KC's View:
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I have to be consistent here. I was critical of bonuses being paid to senior execs at Borders, and I feel the same way about the A&P bonuses.
I have no problem with senior execs being rewarded for exceptional leadership, especially if they are able to save the company. But this sends an awful message, especially if they are looking for concessions.
Of course, A&P could make this look a lot better if they find a way to make sure that employees have some skin in the game, and also will see rewards if they can help the company survive.
