Bankrupt Hawker Beechcraft Files Exec Incentive Plan
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.