Friday, August 24, 2012
A bankruptcy judge has nixed a proposal to give eight top Hawker Beechcraft executives up to $5.3 million in bonuses.
U.S. Bankruptcy Judge Stuart Bernstein handed down on Friday his finding that the bonus plan sets the bar too low to qualify as anything other than a retention program for insiders.
Bernstein said nothing in his opinion is meant to denigrate their efforts or minimize their contributions to the success of the bankruptcy case. But he ruled the plan does not meet legal standards setting challenging goals for such bonuses.
The judge said he rejected the plan because executives would likely earn bonus pay merely by remaining at their jobs.
The International Association of Machinists and Aerospace Workers had opposed it, as did the U.S. Justice Department's bankruptcy watchdog agency.
Hawker released a statement saying:
"Hawker Beechcraft's Key Employee Incentive Plan was designed to recognize the critical role that the leadership team has in the company's ongoing restructuring process, and we are evaluating next steps toward amending the incentive plan so that it conforms to the guidance in the court's opinion."