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Thread: Striking Unions Put Twinkies out of Business

  1. #31
    Bankrupt Twinkie maker seeks $1.8 million in exec bonuses

    Here’s the latest in the Hostess no more Twinkies saga: The company has asked the bankruptcy judge to approve $1.8 million in bonuses for its top executives for their part in liquidating the business, the Associated Press reported.
    The bonuses are needed to retain 19 managers to help with the process, the report said.
    Bankrupt Twinkie maker seeks $1.8M in exec bonuses - The Tell - MarketWatch

    I don't get this, bonuses when a corporation go bankrupt...

  2. #32
    Read it carefully and you will learn why execs of companies going bankrupt, are bankrupt, etc. get big bucks.

    This is not new nor is it peculiar just to Hostess.

    All companies do this....

    Our government does this....

  3. #33
    They are just following the lead from the Wall Street firms that were bailed out with taxpayer money, as well as most of the solar energy companies that went bust after Obama poured $90 billion in taxpayer money into them so that he could get kickbacks in the form of campaign contributions. Hostess is just following the precedents set by the Chicago Machine. The execs will get their money as long as they have been good to the president.

    If the execs are already getting paid well, most will likely stay through the bankruptcy process--with or without the bonus. The last time I checked, running a company into bankruptcy is not exactly a resume enhancer that will make them hot items in the job market.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  4. #34
    This "pay execs to stick around" has been going on long before obama showed up.

    Lot of companies, including the government (like my last employer the USPS), keep people on the payroll and call them 'consultants'.
    So one retires or gets laid off or fired?
    Put them back on as consultants!

  5. #35
    Quote Originally Posted by iowadawg View Post
    This "pay execs to stick around" has been going on long before obama showed up.
    I do know that, but managers should never be paid "bonuses" on top of their salary with taxpayer dollars when they bankrupt a company. Obama took that to a new level.

    $1.8 million / 19 managers = an average bonus of $97,736.84 per Hostess manager. That's a nice bonus.

    Like I said, I don't think most of these guys would bail out because they are not exactly hot commodities on the job market. In a bankruptcy where bonuses take priority over money the company owes to creditors, the creditors just get screwed a lot harder. I definitely have sympathy for the company over the union, but the bonus issue smells more like a barnyard rather than a bakery.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  6. #36
    Hostess - not taxpayer dollars.

    Solyndra - taxpayer dollars.

  7. #37
    I do know that. I was using the Obama example as another way that things should not be done--especially when taxpayer dollars are concerned. In the Obama solar company situation, it looks more like the bonuses were kickback in appreciation for the kickbacks Democrats received in appreciation for money dumped into the taxpayer-funded solar company disasters. Try to repeat that after a few beers.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  8. #38
    Quote Originally Posted by iowadawg View Post
    Read it carefully and you will learn why execs of companies going bankrupt, are bankrupt, etc. get big bucks.

    This is not new nor is it peculiar just to Hostess.

    All companies do this....

    Our government does this....
    I read what you suggested but these bonuses weren't in their contract. Interesting to know that the very same excutive people are allowed to help liquidate the company when they are the one who mismanaged this corporation. I agree with TopDogger that it is insanity. It is like asking a pyromaniac to extinguish a fire.

    The company says the incentive pay is needed to retain the 19 corporate officers and "high-level managers" during the liquidation process, which could take about a year.
    Hostess Executive Bonuses: Twinkie-Maker To Seek Approval For $1.8 Million In Bonuses During Liquidation (UPDATE)

  9. #39
    Remember, these people will also be out of a job.

    Anyways, it is standard practice and will not change.

    Plus of course, the workers are out of a job, but not their union leaders who are raking down more money and perks than any member.

  10. #40
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    Quote Originally Posted by iowadawg View Post
    Remember, these people will also be out of a job.

    Anyways, it is standard practice and will not change.

    Plus of course, the workers are out of a job, but not their union leaders who are raking down more money and perks than any member.
    $1.8 million in bonuses for 19 Hostess managers is ridiculous. But the bigger story is the $2 billion dollars in unfunded pension liabilities that are insured by the taxpayer. I guess that's why the unions decided to shut it down. Better to get the $2 billion in pension money. There's other jobs out there and 2 billion doesn't grow on trees.

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