Company going bust during Covid19

[Sdf4786k]

https://edition.cnn.com/2020/05/13/investing/jcpenney-bankruptcy-bonuses/index.html

Reward first, do paperwork later

New York (CNN Business)As JCPenney struggles with missed debt payments and prepares for a possible bankruptcy filing, it approved bonuses of $1 million or more to its top four executives.

JCPenney won't comment on its bankruptcy plans, but it disclosed that it missed two recent debt payments: $12 million due to bond holders on April 15, and a $17 million payment due on a credit line this past Thursday. The grace periods for those missed payments are Thursday and Friday this week, suggesting a bankruptcy filing could be imminent.

But the company announced Monday evening it has paid a $4.5 million bonus to CEO Jill Soltau, and bonuses of $1 million each for CFO Bill Wafford, Chief Merchant Michelle Wlazlo and Chief Human Resources Officer Brynn Evanson. JCPenney said the big paydays are designed to keep its top talent on board.

"At JCPenney, we are making tough, prudent decisions to protect the future of our company and navigate an uncertain environment, including taking necessary steps to retain our talented management team," said a company in a statement.

Under the plan, the executives will have to repay 80% of their bonuses if they resign before January 31, 2021. They will have to repay the other 20% if specified milestone-based performance goals are not achieved.

Bankruptcy filings often include deep job cuts, and in many cases, those employees who are laid off are unable to get the severance payments that they would normally receive with the loss of their jobs. Bankruptcy law gives a preference to creditors over employee severance payments.

If any of the executives have to repay bonuses, the money will be set aside to pay severance. But there are a number of JCPenney employees who could lose their jobs if their stores close as part of a reorganization. The company had about 90,000 employees as of February 1.

Earlier this week, 16 JCPenney stores out of nearly 850 nationwide reopened. Another 25 openings were announced Wednesday. And it has another 13 stores allowing curb-side pickup, although those locations are not allowing shoppers to go inside the stores.

[Icedbs]

Company going bust and still can take million $ bonuses just to stick around to manage the bankruptcy. Aren't the mgmt team responsible for the bankruptcy in the first place?

The American dream is indeed true.

 

[Ct3833]

Does anyone know are the hyflux executives still collecting  their fat salaries now ? I just want to be surprised by being told "no". 

Edited June 13, 2020 by Ct3833

[Throttle2]

1 hour ago, Ct3833 said:

Does anyone know are the hyflux executives still collecting  their fat salaries now ? I just want to be surprised by being told "no". 

As long as still operating still got money to pay, they will be paid. For how long, we dont know

Before covid, hyflux was already in shit.

If it goes under with no takeover, it will add a lot of job losses to the stats.  

HTL also shaky.

Some fire sales are happening in property , car and watch space already, there will be more.  

Just sit back and have a cigar first.

[Ct3833]

4 hours ago, Throttle2 said:

As long as still operating still got money to pay, they will be paid. For how long, we dont know

Before covid, hyflux was already in shit.

If it goes under with no takeover, it will add a lot of job losses to the stats.  

HTL also shaky.

Some fire sales are happening in property , car and watch space already, there will be more.  

Just sit back and have a cigar first.

Precisely this is what I mean, and I see this behavior ina lot of US listed companies , what share holder value ? Pui ! What employees benefits ? Pui! 

It is about how much more the geedy CEO, CFO and senior executives would get before they parachute out of the company, letting someone else to take over the shit and start the same game all over again until a company collapse.

[Throttle2]

12 minutes ago, Ct3833 said:

Precisely this is what I mean, and I see this behavior ina lot of US listed companies , what share holder value ? Pui ! What employees benefits ? Pui! 

It is about how much more the geedy CEO, CFO and senior executives would get before they parachute out of the company, letting someone else to take over the shit and start the same game all over again until a company collapse.

Once a company gets listed, its all about stock price. The bigger the company the bigger the bulls**t crap.  I am totally with you there.  

Edited June 13, 2020 by Throttle2

[Watwheels]

Boh liao. Dunno the KL one will close as well?

[ToyotaShuttle]

47 minutes ago, Watwheels said:

Boh liao. Dunno the KL one will close as well?

This is sad.