USA Today reports that bankrupt Eastman Kodak “is seeking permission to pay about 300 executives and other employees $13.5 million in bonuses to persuade them to stay with the company as it reorganizes under bankruptcy protection,” saying that “the targeted employees have knowledge and skills critical to help the business emerge from Chapter 11 and would be difficult to replace if they left to pursue other offers. They include 119 middle managers who would share $8.5 million of the total.”
According to the story, “Many in line to receive bonuses have seen their workloads increase while taking what amount to significant pay cuts, the court filing said. That's because some of their compensation was tied to Kodak's performance, and no new long-term incentives are being granted during bankruptcy proceedings.”
The story also says that “Kodak told retirees it has withdrawn for now its motion to end supplemental health care benefits for about 16,000 Medicare-eligible retirees. The company will instead create a retirees committee to examine the issues of medical and survivor benefits.”
According to the story, “Many in line to receive bonuses have seen their workloads increase while taking what amount to significant pay cuts, the court filing said. That's because some of their compensation was tied to Kodak's performance, and no new long-term incentives are being granted during bankruptcy proceedings.”
The story also says that “Kodak told retirees it has withdrawn for now its motion to end supplemental health care benefits for about 16,000 Medicare-eligible retirees. The company will instead create a retirees committee to examine the issues of medical and survivor benefits.”
- KC's View:
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Maybe I am being overly simplistic in how I view this, but aren;t these the same executives who helped drive one of the great brands of the 20th century into the ditch? The ones who did not see the coming of digital photography as a competitor to film?
Exactly why would these folks be difficult to replace? And wouldn’t it make a lot more sense to put that money into a pot to reward anyone who is able to actually come up with a long-term strategic business plan that saves the company?
