A123 Systems' (AONE) Execs Lobby for Bonus Plan, Employee Incentives
A123 Systems (Nasdaq: AONE) shares are volatile once again Tuesday following an update to its bankruptcy and sale process.
According to Bloomberg data, A123 filed papers on October 19th seeking retention and incentive bonus programs for execs, along with a severance plan for about 940 current employees.
Under the proposed plan, execs will receive up to $4.2 million through the incentive plan. Benchmarks on the plan will be the sale price on the lithium-ion battery unit as well as "actual performance against a budget." The minimum sale price is $150 million for any bonus to be received.
The proposed severance plan might cost as much as $6.8 million. Should the buyer offer current employees jobs, the actual cost might be much less.
Currently, Johnson Controls (NYSE: JCI) is in agreement to buy the lithium-ion unit for $125 million.
A hearing to approve an auction of the battery unit is slated for October 30th. A123 wants the judge to require other bids by November 16th, followed by an auction on November 19th, and a hearing to approve sale on November 26th, Bloomberg notes. A hearing on the bonus plan is slated for November 8th.
For more color on current debt, income, and other financial metrics on A123, click here. Shares are down about 18 percent in early trading.
According to Bloomberg data, A123 filed papers on October 19th seeking retention and incentive bonus programs for execs, along with a severance plan for about 940 current employees.
Under the proposed plan, execs will receive up to $4.2 million through the incentive plan. Benchmarks on the plan will be the sale price on the lithium-ion battery unit as well as "actual performance against a budget." The minimum sale price is $150 million for any bonus to be received.
The proposed severance plan might cost as much as $6.8 million. Should the buyer offer current employees jobs, the actual cost might be much less.
Currently, Johnson Controls (NYSE: JCI) is in agreement to buy the lithium-ion unit for $125 million.
A hearing to approve an auction of the battery unit is slated for October 30th. A123 wants the judge to require other bids by November 16th, followed by an auction on November 19th, and a hearing to approve sale on November 26th, Bloomberg notes. A hearing on the bonus plan is slated for November 8th.
For more color on current debt, income, and other financial metrics on A123, click here. Shares are down about 18 percent in early trading.