Borders Aims To Pay $8.3M to Stem Mass Exodus of Executives (BKS)
Borders (OTCBB: BGPIQ)(NYSE: BGP) is seeking to dole out about $8.3 million in order to retain key top executives, following a filing with the U.S. SEC last Thursday which said that executives were fleeing at a rate of about five per week following the Company's Chapter 11 filing in February.
Because they did such a great job running the company in the first place.
The court documents said that Borders may not be able to find suitable candidates for the time frame that the Company set to formulate a plan of emergence or sale of the company.
Specifically, Borders wants to give CEO Bennet LeBow $1.7 million, with $1.1 million for executive vice presidents, $371,000 for the V.P. of Human Resources, $2.4 million in other bonuses, and $1.2 million for payments to its 25 directors and other executives.
Borders will be able to make their case in court on April 14th.
In the news today, main rival Barnes & Noble (NYSE: BKS) is seeing some upside, trading about 8.2% better to $9.97.
The report and filings may take some investors back to 2008 - 09 amid the financial crisis that caused a near collapse of the financial system in the U.S. and worldwide. During that time, several large financial institution executives were determined to grab their bonuses while they could, as their company sank around them (*cough* Merrill Lynch).
Though the headline would suggest the same, Borders executives appear to be participating in a mass exodus...bonus or not. Would the $8.3 million make a difference, or do actions speak louder than words in this case, with the exiting executives' footsteps creating a deafening cacophony as they fade in the distance.
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Because they did such a great job running the company in the first place.
The court documents said that Borders may not be able to find suitable candidates for the time frame that the Company set to formulate a plan of emergence or sale of the company.
Specifically, Borders wants to give CEO Bennet LeBow $1.7 million, with $1.1 million for executive vice presidents, $371,000 for the V.P. of Human Resources, $2.4 million in other bonuses, and $1.2 million for payments to its 25 directors and other executives.
Borders will be able to make their case in court on April 14th.
In the news today, main rival Barnes & Noble (NYSE: BKS) is seeing some upside, trading about 8.2% better to $9.97.
The report and filings may take some investors back to 2008 - 09 amid the financial crisis that caused a near collapse of the financial system in the U.S. and worldwide. During that time, several large financial institution executives were determined to grab their bonuses while they could, as their company sank around them (*cough* Merrill Lynch).
Though the headline would suggest the same, Borders executives appear to be participating in a mass exodus...bonus or not. Would the $8.3 million make a difference, or do actions speak louder than words in this case, with the exiting executives' footsteps creating a deafening cacophony as they fade in the distance.
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Exec Bonusing
So tell me again why you would want to retain the guys who ran the ship aground? Execs are an ambitious, dime-a-dozen demographic. You can easily replace these losers with other people who will work for far less and actually present the possibility of returning the company to health.
cacophony?
How can footsteps create a deafening cacophony AS THEY FADE? The need for bookstores has never been more evident.
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Exec Bonusing
John in CA on Apr 7, 2011 10:58 AMMark as Spam
You must be kidding. What about the average employee who has worked without raises for years. Those are the people Borders should be worried about losing, not some money grabbing executives that have little or no experience selling books or dealing with paying customers.