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Hostess to seek approval for executive bonuses


KID

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Hostess Brands Inc. plans to ask for a judge's approval Thursday to give its top executives bonuses totaling up to $1.8 million as part of its wind-down plans.

 

The maker of Twinkies, Ding Dongs and Ho Hos said the incentive pay is needed to retain the 19 managers during the liquidation process, which could take about a year. Two of those executives would be eligible for additional rewards depending on how efficiently they carry out the liquidation.

 

Hostess is also seeking final approval for its wind-down, which was approved on an interim basis last week.

 

The process includes the quick sale of its brands, which also include Wonder Bread. Hostess said it has received a flood of interest in the brands.

 

The company's bankruptcy means loss of about 18,000 jobs

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Back in the 1930's a lot of people moved even though they had no money. Have you ever heard of the dust bowl? If people want something bad enough, they will do what they have to to get it. Of course,

CEO Pay Grew 127 Times Faster Than Worker Pay Over Last 30 Years: Study     Sucks to be the little guy these days....

Having been on both sides of the fence, and been highly paid at times, in general, executive pay is EXCESSIVE.   I have no objection to high pay for anyone, IF, and only if, it is based upon results

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I see the top dogs are gonna get their's--AGAIN

 

Yep-- them high priced CEO's and executives get their bonus's even when they are at the wheel of a failing company--while the workers take pay cut after pay cut paying out more and more insurance and lose their pensions

 

Funny that the company did not have enough money to pay it's workers and were asking them to work for poverty wages--But their budget included these big bonus's for upper management

 

And some people don't understand why these workers told the company to go screw themselves :banghead:

Edited by KID
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USMC-Retired

without knowing all the details minus what is reported. 19 people at 1.8 million is only 94K per executive. Not exactly a staggering outrageous figure. Reading the story from a few sources it is to retain those 19 employees over the next year of shut down. That does not sound to incredible as there is much to liquidate in many locations. Also bonuses if they meet the goal which was outlined does not seem to crazy either.

Edited by USMC-Retired
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19 people at 1.8 million is only 94K per executive

 

yep-- 94k-- thats what 4 employees would have had to work for a whole year to get at the new salary if it was accepted

 

Retention bonus???--Well it seems to me that they should be happy to have a job at all in this economy--well thats what a few people said about the workers anyway :)

 

bogus shit anyway you put it and ya know it !!!

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dennis1105

yep-- 94k-- thats what 4 employees would have had to work for a whole year to get at the new salary if it was accepted

 

Retention bonus???--Well it seems to me that they should be happy to have a job at all in this economy--well thats what a few people said about the workers anyway :)

 

bogus shit anyway you put it and ya know it !!!

It's none of the worker's business what the execs get paid.....
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Having been on both sides of the fence, and been highly paid at times, in general, executive pay is EXCESSIVE.

 

I have no objection to high pay for anyone, IF, and only if, it is based upon results.

When a company has failed, then the executives deserve zero, nothing, zilch. sweet FA.

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It's none of the worker's business what the execs get paid.....

 

When they expect the WORKERS to take a 50% pay cut and double there insurance-- You bet your ass it is the workers business--If ya didn't notice-- Thats just a BONUS !!!!

 

Why shouldn't the workers know what the executives make ??? Do the executives know what the workers make??? :moon:

 

I know people who work at the plant here in KC-- they have been taking it up the wazoo for 10years now while shit like this goes on-- I would have told that company to fuk off a long time ago

 

I wonder if the captain of the titanic had survived-- Ya think the company would have gave him a bonus ???? YA thats what I thought -- same-- same

 

But it is perfectly O.K. for these top dogs to not only get their high--end salaries-- But bonuses when the ship is sinking :banghead:

 

Same shit as the banking and wall street fiasco-- They get their's--- and everyone else PAYS FOR IT !!!

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Mr. Mike

A couple of thoughts...

 

Talented business professionals command high salaries because they are the best at what they do. Much like any other professional. Typically these folks are highly educated, driven and work sixty hour work weeks. My guess is, those getting retention bonuses already had new jobs lined up, and were getting ready to move on. Hostess chose to incentivized them to stay a while longer to aid with any transition opportunity that might come along. Including a buy out of the Brand. A wise move.......There are "Headhunter" companies (representing other companies) that earn their money by constantly searching , contacting, wining/dining, this calibre of business talent in hopes of luring them away from their current job, to another more lucrative position. It happens every day!

 

There is nothing stopping any rank and file union member from going back to school to retrain, and retool for a better paying career. Of course it will require taking some risks, some interruption of their daily life, and perhaps some personal financial expense, but it is their choice. They cannot always blame the corporations for their lot in life, and they cannot always expect an annual pay raise just because another year went by. I have never worked in a union job, but my guess is, every union job has a "pay scale", from entry level, to top level on the pay curve. This is true with most job/careers. When you reach the top of the pay curve, future raises, if any, will be miniscule at best, through no fault of the company!...................The employee then has to make a personal decision where to go from there!

Edited by Mr. Mike
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USMC-Retired

So if they do pay these 19 people they can not sell off the company and the stock holders get zero. So you must have people to do it It is retention for one years salary for the 19 people left. That is not an outragous amount considering at the end of a year they are all unemployed.

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USMC-Retired

Have you read why they had many issues. Here is one Hostess spent 100 million dollars on health coverage. Did you know because union rule 50% of the people they covered never worked for hostess. 50 million a year to cover non-hostess retirees. There is a clause if one company folds the others cover it. So yes they needed to cut medical costs. Did you know the top three exec last year earned 3 dollars in salary they tried a back door pay raise and it was caught so the CEO fixer said here is the fix.

The union killed this company with stupid rules. Like two trucks to deliver to one store. Because bread is different then sweets. Or grocery stores are diffrent the 7/11s so they needed diffrent trucks. Union rules which hostess said it could no longer do .

 

There are so many union BS rules that hostess wanted to cut to stay in business yet they said no and it cost 18k jobs . Now you have 19 people to sell it off for 94k a year each and you are upset with that.

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Talented business professionals command high salaries because they are the best at what they do.

 

Well-- If they are so TALENTED-- why did they drive the business into the ground???

It certainly is not because the workers have not sacrificed their share over the last decade or so since they filed for bankruptcy ???

 

Just a Thought :)

 

We are seeing this time after time-- Big money Joe drives the company into the drain-- then collects his big money bonus on the way out the door-- While the rest of the Employees are left holding the bag

Edited by KID
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USMC-Retired

The union is why. They could not sustain the costs and regulations by the union . They in good faith tried to explain it but the union thought they were bluffing. They were not.

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Mr. Mike

Well-- If they are so TALENTED-- why did they drive the business into the ground???

It certainly is not because the workers have not sacrificed their share over the last decade or so since they filed for bankruptcy ???

 

Just a Thought :)

 

We are seeing this time after time-- Big money Joe drives the company into the drain-- then collects his big money bonus on the way out the door-- While the rest of the Employees are left holding the bag

I think it would (at times) be fair to blame management of "non union" companies if the companies went under, or under performed, but companies with union workers are often faced with the same issues we see with Hostess. Unrealistic demands, failure on the part of the unions to understand the individual business/s, failure to understand the markets and the competitive pressures within the market, and yes, the ever present feeling of entitlement on the part of the union.

 

I don't detect any sense of loyalty on the part of the union workers toward Hostess. If I was CEO, I never would have allowed a union in the company. I would have paid competitive wages and benefits, offered those who performed well, every promotional opportunity possible, and,,,,,,,,,I would have profit sharing! In return I would expect the employees to do their best, and if times got tough,I would expect them and management to pull together to get through. If that meant pay cuts, everyone gets a pay cut, and management even more so. When business improved, all pay would be restore to previous levels immediately. I would need a union to remind to do the right thing.

 

There is a good example of a fleece business up in Mass. that burned down (almost) about fifteen years ago, The owner/CEO was amazing! I'll check it out.

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