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I know this is short but if you have been following my other diary then you would be interested in knowing that the hedge fund appointed CEO and board are defending in court today NEW bonuses equal to 75% of their yearly pay to 'wind the company down'.

http://www.chicagotribune.com/...

I think that's how unemployment works. Right?

Also, I will be on CNBC for a live interview during the show Closing Bell at 3:30pm Central time.

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Comment Preferences

  •  sickening (9+ / 0-)

    CEO compensation is out of whack with reality and layering on debt is ridiculous.

    Years ago, my dad's company went belly up. Today he makes less than he did in 1980. At the time, he had a pension and after nearly 20 years on the job, he would have been able to retire. Today, 32 years later, he's still working at 69. He works a 50 hour work week and has since I was a kid. This was his part time job that he worked when not at the Bow Socket and it became his full time work.

    The company raided its pension and my dad's pension became like smoke. In the end, they gave him a compensation package of about 8000 for nearly 20 years on the job. And 10 years later, when the guys sued for their pension, there was a mysterious fire and all the paper work was lost, effectively ending the law suit.

    Yep, this is the workers' fault, not the greedy bosses. Greed is good, in Mitt's version of America.

    •  The US needs to decouple pensions from employment (3+ / 0-)
      Recommended by:
      phonegery, kurt, gypsytoo

      ...just  like health insurance. We've known this for decades. Even the pensions that have survived are known to be underfunded yet Congress grants passes year after year.  Linking our pensions to jobs unnecessarily also links them to mismanagement (like Hostess), greed, bad risk management, and the fraud vulture capitalists game.

      Let all Bush tax cuts expire and , bring on the Sequestration cuts to defense.

      by kck on Mon Nov 19, 2012 at 11:47:49 AM PST

      [ Parent ]

  •  There are people up and down the line.... (2+ / 0-)
    Recommended by:
    Catte Nappe, Neuroptimalian

    ...who'll be given incentives to stay until the company actually closes its books in a managed and accurate way. Everyone with options are going to leave unless there's some compensation for staying with the company that no longer has a future for them. This is SOP.  A few chiefs experienced in closing up shops and the more essential internal people who stay the cheaper, faster, better the next months will be. What are the alternatives? Hostess is no longer in the same business.

    Let all Bush tax cuts expire and , bring on the Sequestration cuts to defense.

    by kck on Mon Nov 19, 2012 at 11:38:22 AM PST

    •  Their yearly salaries should be plenty (2+ / 0-)
      Recommended by:
      TracieLynn, kurt

      They're regular pay should be enough. They aren't giving that up. If it takes a year then they should get a years salary. Fine. But why a bonus on top of that?

      •  Because they can get the same or better pay (2+ / 0-)
        Recommended by:
        phonegery, Neuroptimalian

        ...at a healthy company, one with a future that's not shutting down. Of course, the same bad decision makers that drove Hostess into the ground are probably not desirable but some others may be, justifiably, and the stay-pay bonuses will be offered to people way down into the non-exec level. Closing up operations takes time no one is personally invested in spending and being the last one to go is an added disability the first to go don't suffer (e.g., later on the new job search). It's business...kind of like what casket builders and grave diggers are to life, I guess.

        Let all Bush tax cuts expire and , bring on the Sequestration cuts to defense.

        by kck on Mon Nov 19, 2012 at 12:28:06 PM PST

        [ Parent ]

    •  the ceo already had pay tripled (1+ / 0-)
      Recommended by:
      kck

      and now he gets a bonus?

      Very easy to find some contract managers who can wind it down for a lot less.

      favorite band: twisted gloating

      by citizen k on Mon Nov 19, 2012 at 04:47:04 PM PST

      [ Parent ]

  •  firing thousands of people (1+ / 0-)
    Recommended by:
    kurt

    at the holidays is such stressful work, they need the money to console themselves, plus,  when you serve the false god Mammon, it would be a sin to let the creditors, the pension fund or former employees have a penny if you can steal it first.

  •  Ahh yes, the 'retention bonus' (1+ / 0-)
    Recommended by:
    kurt

    Because you wouldn't want the people you hired to close down a company to get wind that the company was closing and look for new jobs, would you?

  •  That is the current American big biz model; they (1+ / 0-)
    Recommended by:
    kurt

    Don't need us to work for them to make money. They don't need us to consume either. We have made ourselves disposable.

    Thanks to the rotten TGOP.

    The radical Republican party is the party of oppression, fear, loathing and above all more money and power for the people who robbed us.

    by a2nite on Mon Nov 19, 2012 at 11:48:50 AM PST

  •  This would be like... (0+ / 0-)

    the Captain and officers of the Titanic grabbing all the liquor from the bar as they piled into the life boats and left everyone else to fend for themselves.

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