Judge Denies Bonuses For Executives Who Bankrupted Sports Authority
A bankruptcy judge has ruled against giving large bonuses to executives who worked for Sports Authority. Is this a good policy? Cenk Uygur and Ana Kasparian, hosts of The Young Turks, break it down. Tell us what you think in the comment section below.
"A U.S. bankruptcy judge refused on Tuesday to allow Sports Authority to pay up to $2.85 million in bonuses to four executives for overseeing the winding down of the national sporting goods chain.
Englewood, Colorado-based Sports Authority filed for bankruptcy in March with hopes of keeping some of its 464 stores open, but battles among lenders and suppliers eventually scuttled those plans. Its final stores closed last month.
"I think it’s just inappropriate to pay senior executives a bonus when all the employees are losing their jobs," said Judge Mary Walrath during a hearing in Wilmington, Delaware.
Sports Authority said the bonuses were essential to ensure executives squeeze the most value out of its assets by adhering to a budget and preventing waste.
The company asked to keep the identities of the executives under seal to "minimize detrimental impacts on employee morale," which prompted an outcry from some of the 14,000 former staffers.
"I’m not surprised the employees are sending angry emails about it," said Walrath.
Bankrupt companies often get court approval to make special bonus payments to top executives for hitting performance targets designed to maximize value for creditors.”*
Read more here: http://www.reuters.com/article/us-sportsauthority-bankruptcy-idUSKCN10D214
Hosts: Cenk Uygur, Ana Kasparian
Cast: Cenk Uygur, Ana Kasparian
***
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A bankruptcy judge has ruled against giving large bonuses to executives who worked for Sports Authority. Is this a good policy? Cenk Uygur and Ana Kasparian, hosts of The Young Turks, break it down. Tell us what you think in the comment section below.
“A U.S. bankruptcy judge refused on Tuesday to allow Sports Authority to pay up to $2.85 million in bonuses to four executives for overseeing the winding down of the national sporting goods chain.
Englewood, Colorado-based Sports Authority filed for bankruptcy in March with hopes of keeping some of its 464 stores open, but battles among lenders and suppliers eventually scuttled those plans. Its final stores closed last month.
“I think it’s just inappropriate to pay senior executives a bonus when all the employees are losing their jobs,” said Judge Mary Walrath during a hearing in Wilmington, Delaware.
Sports Authority said the bonuses were essential to ensure executives squeeze the most value out of its assets by adhering to a budget and preventing waste.
The company asked to keep the identities of the executives under seal to “minimize detrimental impacts on employee morale,” which prompted an outcry from some of the 14,000 former staffers.
“I’m not surprised the employees are sending angry emails about it,” said Walrath.
Bankrupt companies often get court approval to make special bonus payments to top executives for hitting performance targets designed to maximize value for creditors.”*
Read more here: http://www.reuters.com/article/us-sportsauthority-bankruptcy-idUSKCN10D214
Hosts: Cenk Uygur, Ana Kasparian
Cast: Cenk Uygur, Ana Kasparian
***
The Largest Online News Show in the World. Hosted by Cenk Uygur and Ana Kasparian. LIVE STREAMING weekdays 6-8pm ET. http://www.tytnetwork.com/live
Young Turk (n), 1. Young progressive or insurgent member of an institution, movement, or political party. 2. Young person who rebels against authority or societal expectations. (American Heritage Dictionary)
Download audio and video of the full two hour show on-demand + the members-only post game show by becoming a member at http://www.tytnetwork.com/join/. Your membership supports the day to day operations and is vital for our continued success and growth.
Get The Young Turks Mobile App Today!
Download the iOS version here: https://itunes.apple.com/us/app/the-young-turks/id412793195?ls=1&mt=8
Download the Android version here: https://play.google.com/store/apps/details?id=com.tyt
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Sports authority was expensive? Not in my area. Back in the 90s to early 2000 there was one right by my house, prices were pretty reasonable
How about we make the assumption that in order for CEOs to justify their insanely high salaries, they need to stay on till the end. Closing costs are included in their everyday salaries when not in bankruptcy, but closing costs are eventually used at the end. Make it a norm- a part of their sign on contract.
Cenk, come off it. A trustee in bankruptcy would do a better job of winding down the company for well under 4 x $2.85 million. And if the executives knew how to run the company, why did it go broke??
I'm against all executive bonuses. Their salaries are high enough and for failing to run a company wtf. Take away their pensions and drain their social security until their debt free if there is any.
Maybe the staff paychecks will bounce..like happened to me
Cenk ,we're all just big children inside. I know I'd do the same thing. Haere Mai from New Zealand!
Although I was not an executive, I worked for a large tech company that went bankrupt, and I was offered a series of "bonuses" to stay in my job to complete work that needed to be done as the company's assets were divided up and sold. The intent was to give incentive to those with required knowledge and skills to stay when the most obvious instinct is to flee and find another job. Its a win for all parties – even though I still jumped ship at the earliest opportunity ..
I don't think the execs should get the bonuses either. However when these execs were rewarded for failure in their youth, so why not now.. Remember that great liberal idea of how we should give trophies for showing up and never keep score in youth sports? Even if you failed you were rewarded. Every week after a game I would have to tell my kids that was not how the real world works.
Send them to jail if they don't stay and finish their job. That should be their incentive.
the way of the world, eh aqui los dejo, viva el mas listo del mas pendejo
Cenk @ 3:27 "the ones who know how to run the company…". Let me correct that for you…the ones who know how to run the company…into the ground! I'm with Ana on this all the way. If the execs can be "rewarded" or "motivated" to stay and see things through, so can the employees. They're all paid a salary to do their jobs and if they want to leave before it's all said and done, let them. There are many consultants out there who will gladly take on a temp salary to see things through and they couldn't do any worse than the losers that ran the company into the ground. Bottom line…I'm glad the judge exercised common sense on this decision and denied the bonuses. That would be like rewarding bad work and adding insult to injury.