Bankrupt Hawker Beechcraft Files Exec Incentive Plan

AINalerts » July 19, 2012
July 19, 2012, 4:15 PM

Hawker Beechcraft filed with the U.S. bankruptcy court requesting permission as part of the restructuring to grant bonuses to most of its “senior leadership team.” The incentive bonuses under the key employee incentive plan could total as much as 200 percent of each individual’s base salary; however, the filing makes clear that the bonuses are based on the achievement of certain incentive goals.

For example, if the sale to a third party results in a purchase price less than Superior Aviation’s original offer of $1.79 billion, the bonus award would decrease by an amount equivalent to 25 percent of each senior leader team member’s base salary for each $100 million below this figure. The maximum payout under the “standalone transaction award” plan, “payable only if ‘stretch’ goals are achieved,” would total $5.328 million.

The HBC senior management team, said the filing, “will play an indispensible role in the performance of business over the next few months, which will drive the overall outcome” of a third-party sale or standalone continuation of the company. Therefore, it continued, the bonuses are in recognition of the key roles senior management will play in restructuring efforts and operation performance.

According to a Hawker Beechcraft representative, incentive bonus plans are typical in bankruptcy proceedings.

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don
on July 24, 2012 - 11:54pm

That is just what Beech needs; a huge financial gift to the people who ran it into the ground in the first place. why not just burn the money in a barrel out back, at least then it could keep some people warm.

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Collyer
on July 27, 2012 - 5:39pm

The only thing more irritating than this request was the fact that they responded to the IAM objection with the point that most of the executives in line for bonuses were put in place after the company's debt situation really piled up in March 2009. So basically "its not our fault". They were put into place to bring the company back to profit...obviously they failed, so tell me why they deserve a bonus.

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