“In a company that’s declared bankruptcy (TWICE!), mind you. ;)”
I wonder what the compensation was for the execs.
I seem to recall that in the last 15 years lots of corporations were driven into the ground by execs who then bailed out with their own private golden parachutes.
If that’s the case here then I find it hard to care if they went under.
I don’t know any details so this may not be like that, but if it were the execs padding their own pockets while asking the workers to take a paycut then I think the stikers were justified.
The Company was working with a 80M loan that was given to them to either work out a deal or close. Losing 8M a day during the strike its easy to see that the only golden parachute was borrowed money via a court order. Once the trademarks are sold and the equipment I really don’t think the management is walking away dragging bags of cash. The Unions were warned that time was short, even the Teamsters urged them to settle. Frankly they get what they asked for.
“I wonder what the compensation was for the execs.
I seem to recall that in the last 15 years lots of corporations were driven into the ground by execs who then bailed out with their own private golden parachutes.”
A detailed article here:
http://management.fortune.cnn.com/2012/07/26/hostess-twinkies-bankrupt/
(a little dated, from last July)
EXCERPT:
“Even as it played the numbers game, Hostess had to face chaos in the corner office at the worst possible time. Driscoll, the CEO, departed suddenly and without explanation in March. It may have been that the Teamsters no longer felt it could trust him. In early February, Hostess had asked the bankruptcy judge to approve a sweet new employment deal for Driscoll. Its terms guaranteed him a base annual salary of $1.5 million, plus cash incentives and “long-term incentive” compensation of up to $2 million. If Hostess liquidated or Driscoll were fired without cause, he’d still get severance pay of $1.95 million as long as he honored a noncompete agreement.”
Gee, for a company in dire straits, you would think that there would be some “performance strings attached” to his compensation contract. But there seem to have been none, at least in this case. Certainly doesn’t help when the company is trying to put forward an “austerity” argument. Just sayin’...
I’ll guess that when the assets, equipment, trademarks are sold off, the new owners will look to startup again. They’ll probably be looking for -some- former employees. I’d expect them to have a “blacklist”, as well. Them’s the breaks, I guess.