Hostess to Dole Out Up to $1.75M in Exec Bonuses
Says incentive pay will help it retain necessary personnel
By Kate Seamons, Newser Staff
Posted Nov 30, 2012 6:43 AM CST
Updated Nov 30, 2012 7:53 AM CST
A cashier rings up boxes of Hostess Twinkies and Cup Cakes at the Hostess Brands' bakery in Denver, Friday Nov. 16, 2012.   (AP Photo/Brennan Linsley)

(Newser) – Hostess executives are in for a sweet finish: A federal bankruptcy judge yesterday gave the company the OK to hand out as much as $1.75 million in bonuses to 19 corporate officers and high-level managers. The bonuses are intended to serve as a carrot to keep these employees with the company during the liquidation process, and will be doled out only if they "achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down," says a Hostess rep.

He notes that the maximum bonus amount falls below the average amount in similar bankruptcy cases, and that the bonuses wouldn't extend to CEO Greg Rayburn, who the AP notes is making $125,000 monthly. The judge also put the final nail in the company's coffin, granting it final approval to cease operations. The Los Angeles Times reports that Hostess already has a long line of potential bidders knocking on its door. It says it's in talks with 110 would-be buyers. Rumored to be among the group: Grupo Bimbo, the company behind Sara Lee and Entenmann's, and C. Dean Metropoulos & Co., the owner of the maker of Pabst Blue Ribbon beer.

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Showing 3 of 92 comments
Naked_Emperor
Dec 1, 2012 2:54 PM CST
If another company buys hostess, are the legally required to uphold the union contracts that are in place?
jgmann
Dec 1, 2012 12:05 PM CST
Found online: The CEO, a Teabagger, and a Union member are sitting at a table with a dozen twinkies. The CEO immediately takes 11 twinkies for himself, then turns to the Teabagger and says, "Watch out, that Union guy wants part of your Twinkie."
TessTalks
Nov 30, 2012 10:40 PM CST
More BS from a company that just wants to shut down, take all the cash, and blame it on the workers, and move on to something bigger and better for THEMSELVES. What's it going to take for this country to wake up and see that big biz is systematically sending the middle class back to slavery?