Current Events > Sears bankruptcy court OKs $25 million in bonuses for top execs

(+) Yeah! (+)

https://www.cbsnews.com/news/sears-bankruptcy-court-oks-25-million-in-bonuses-for-top-execs/

Working for a bankrupt retailer still has it perks -- at least if you're among hundreds of high-level employees at Sears Holdings.

The company behind the Sears and Kmart chains on Friday obtained a U.S. bankruptcy court's permission to pay as much as $25.3 million in bonuses to top executives and other high-ranking employees at Sears, which filed for Chapter 11 bankruptcy protection in October.

The retailer successfully made the case that it needs to give employees a financial reason to stick around, even as it reported losses of almost $1.9 billion in the first three quarters this year.

"Under these circumstances, it would be understandable if many key employees are asking themselves whether they should be seeking other opportunities," Sears said in a court filing last month. However, the retailer "cannot afford this uncertainty however understandable it may be," the company

The judge gave the green light to Sears' proposal that it offer bonuses up to $8.4 million to 19 executives if Sears meets some financial targets during the next six months. Those workers would be eligible for the extra money if Sears is positioned to reach those targets when sold, a lawyer for Sears said at the hearing, according to the Chicago Tribune.

Sears also received approval to earmark up to $16.9 million in retention bonuses for another group of 315 senior employees, with each eligible for the equivalent of 30 percent to 40 percent of their salary, to be divided into quarterly payments during the next year.

Former CEO Eddie Lampert is still chairman of Sears, and his hedge fund, ESL Investments, recently offered to acquire what's left of the company, which is currently headed toward liquidation. The once dominant retailer has been shuttering stores and laying off employees, with roughly 500 stores still in operation.

In a silver lining of sorts, Sears reported a 4.3 percent increase in sales during the last quarter at Sears and Kmart stores still open at least a year, with the boost in sales "driven by liquidation sales in the stores that were announced for closure," Sears said Thursday in a regulatory filing.

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Former CEO Eddie Lampert is still chairman of Sears, and his hedge fund, ESL Investments, recently offered to acquire what's left of the company, which is currently headed toward liquidation.

How the actual fuck is this legal
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Tmaster148 posted...

The retailer successfully made the case that it needs to give employees a financial reason to stick around

Too bad company loyalty died a couple decades ago
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Bio1590 posted...

Former CEO Eddie Lampert is still chairman of Sears, and his hedge fund, ESL Investments, recently offered to acquire what's left of the company, which is currently headed toward liquidation.

How the actual fuck is this legal

Welcome to the real world.
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wackyteen posted...

Tmaster148 posted...

The retailer successfully made the case that it needs to give employees a financial reason to stick around

Too bad company loyalty died a couple decades ago

So top execs are employees that need financial incentives, but cashiers aren't employees that need financial incentive
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Bio1590 posted...

Former CEO Eddie Lampert is still chairman of Sears, and his hedge fund, ESL Investments, recently offered to acquire what's left of the company, which is currently headed toward liquidation.

How the actual fuck is this legal

ahh I see you're still naive and innocent
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this is what happens when corporations and the rich control the government.
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Bio1590 posted...

Former CEO Eddie Lampert is still chairman of Sears, and his hedge fund, ESL Investments, recently offered to acquire what's left of the company, which is currently headed toward liquidation.

How the actual fuck is this legal

Lobbying politicians
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Bio1590 posted...

Former CEO Eddie Lampert is still chairman of Sears, and his hedge fund, ESL Investments, recently offered to acquire what's left of the company, which is currently headed toward liquidation.

How the actual fuck is this legal

the ceo purposefully cannibalized it, sears already had NA distribution, even to remote rural areas, well trusted brands...like the kenmore buy one or two in a life time type appliances.

basically he got all the actual property sears owned when it went under, he made some people a bit richer while doing it. it was run under on purpose.

it had nothing to do with nobody knew the internet existed

to quote another redditor;

" It's kind of nuts. As the primary debtor of his own company chapter 11 is essentially him deciding how to pay himself back with the assets of the company he bankrupted. While the rest of the shareholders, as well as taxpayers, pay out millions to fund the administration process. "

From reddit

https://www.reddit.com/r/news/comments/a6nwj7/sears_bankruptcy_court_oks_25_million_in_bonuses/
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Sad that Sears is going under considering how important they were to the black community.
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So in other words the rich who fucked up everything get richer and the workers get the shaft.
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brestugo posted...

So in other words the rich who fucked up everything get richer and the workers get the shaft.

yes. and the funny thing is those workers that get the shaft vote in the assholes that openly do the shafting...
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This is why we need to do some French revolution shit once in a while to put the fear of God in these people.
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monkmith posted...

this is what happens when corporations and the rich control the government.

This is literally just capitalism working as intended

Fucking defend this @FLUFFYGERM
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wackyteen posted...

Tmaster148 posted...

The retailer successfully made the case that it needs to give employees a financial reason to stick around

Too bad company loyalty died a couple decades ago

I don't know a lot about business, but what was the reason given for WHY they needed the exes to stick around?

Ruvan22 posted...

wackyteen posted...

Tmaster148 posted...

The retailer successfully made the case that it needs to give employees a financial reason to stick around

Too bad company loyalty died a couple decades ago

I don't know a lot about business, but what was the reason given for WHY they needed the exes to stick around?

The reason is always "We need these people to guide the company through these times" so they throw a shitload of money at them to not jump ship to another company even though said people are generally the reason the company is where it is.

The lower-level employees just get shafted.
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Behaviorism posted...

wackyteen posted...

Tmaster148 posted...

The retailer successfully made the case that it needs to give employees a financial reason to stick around

Too bad company loyalty died a couple decades ago

So top execs are employees that need financial incentives, but cashiers aren't employees that need financial incentive

It is much easier for a cashier to find a new job (or be replaced) than a top exec.
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People making millions who ultimately run the business to the ground - millions in bonuses

The entire work force who worked at the stores - no severance or even a heads up for the exact day their workplace would close and not even a "sorry we can't do anything for you"
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DarkRoast posted...

Bio1590 posted...

Former CEO Eddie Lampert is still chairman of Sears, and his hedge fund, ESL Investments, recently offered to acquire what's left of the company, which is currently headed toward liquidation.

How the actual fuck is this legal

Welcome to the real world.

Still corrupt as fuck
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Trigg3rH4ppy posted...

This is why we need to do some French revolution shit once in a while to put the fear of God in these people.

And decapitate the greatest scientist of his day

https://en.m.wikipedia.org/wiki/Antoine_Lavoisier
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Trickle down economics etc
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Behaviorism posted...

wackyteen posted...

Tmaster148 posted...

The retailer successfully made the case that it needs to give employees a financial reason to stick around

Too bad company loyalty died a couple decades ago

So top execs are employees that need financial incentives, but cashiers aren't employees that need financial incentive

most of them had no choice, the stores just closed
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All the lower employees just need to walk out and never come back.
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This is a non-story. The bonuses are contingent on hitting performance goals after exiting bankruptcy.
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