Toys R Us bankruptcy trustee blasts executive bonus plan

[GMDino]

Same old, same old.



The same people at the top getting the binuses were the ones that drove it into bankruptcy.


Meanwhile the lowest paid get laid off to "save money".


Such a joke.


Been this way since the 80's. Money over people.


https://www.usatoday.com/story/money/nation-now/2017/11/29/toys-r-us-bankruptcy-trustee-blasts-executive-bonus-plan/907641001/

Quote:WOODLAND PARK, N.J. — The U.S. trustee in the Toys R Us bankruptcy case has filed a strongly worded objection to the company's plan to pay between $16 million and $32 million to its 17 most highly paid executives. 


"It defies logic and wisdom," the objection by trustee Judy A. Robbins states, that Toys R Us is proposing "multimillion-dollar bonuses for the senior leadership of a company that began the year with employee layoffs and concludes it in the midst of the holiday season in bankruptcy.

"Apparently," Robbins said, "this Christmas, Toys R Us intends to deliver not only 'children their biggest smiles of the year' but the insiders, too,’ " which is a reference to court claims by Toys R Us that its No. 1 goal is to keep children happy.

U.S. trustees are assigned to bankruptcy cases to make sure bankruptcy laws are followed and to administer regulations involving claims by creditors.

Toys R Us filed a motion Nov. 15 asking for permission for an executive incentive bonus plan that would give its top executives $16 million in extra pay. Those bonuses would double to $32 million if certain financial goals were reached.


Robbins noted that five of the top Toys R Us executives also received $8.2 million in retention bonuses five days before the bankruptcy filing in September. Those bonuses included a $2.8 million payment to CEO Dave Brandon "just to stay with the company," the objection states.

The trustee also argued that the incentive bonuses are questionable in light of the fact that Toys R Us does not yet have a reorganization plan in place and that there is "great uncertainty" that creditors will recover the money owed to them by the company. She also commented that Toys R Us did not provide enough information on how the performance guidelines for the bonuses were set. 

Toys R US, in seeking approval of the incentive pay, told the bankruptcy court that motivating its top employees was crucial to the company's successful turnaround. 

Attorneys for Toys R Us also filed a motion for permission to pay an additional $45.8 million to 3,805 management employees not in the top executive ranks. Those bonuses would rise to $68 million if the company exceeds its financial goals.

In a statement on the incentive motion, Toys R Us said: "This type of plan is standard practice for a company involved in a restructuring and in this case rewards team members at all levels of the company. Before an incentive program can be implemented, we will continue consulting with our creditors and the U.S. trustee regarding the program, and the program must be reviewed and approved by the Federal Bankruptcy Court."

Bankruptcy Judge Keith L. Phillips, who is hearing the case in Richmond, Va., is expected to rule on the motion in December.

[Benton]

Couple things.

1- Bankruptcy isn't always a bad thing, it depends on why theyre filing and what the intent is. If it's just a matter of restructuring, it's probably not a big deal.
2- We reward failure with the trickle down theory. Those at the top get rewarded the most, those at the bottom the least. It's ridiculous. And for the companies waiting for ToysRUs to pay their bills, it's ludicrous they could pay"retention bonuses" before debts.

I don't really understand retaining failure anyway. If an employee isn't doing his job, you fire them. Except in America, where we pay them more money to run companies into the ground.

[GMDino]

(11-29-2017, 11:42 PM)Benton Wrote: Couple things.

1- Bankruptcy isn't always a bad thing, it depends on why theyre filing and what the intent is. If it's just a matter of restructuring, it's probably not a big deal.
2- We reward failure with the trickle down theory. Those at the top get rewarded the most, those at the bottom the least. It's ridiculous. And for the companies waiting for ToysRUs to pay their bills, it's ludicrous they could pay"retention bonuses" before debts.

I don't really understand retaining failure anyway. If an employee isn't doing his job, you fire them. Except in America, where we pay them more money to run companies into the ground.

I understand the bankruptcy comment and agree on the other two comments.

I spent an unfortunate amount of time just today telling our shop that while I fully understand that we are a production shop the higherups think they need more salesmen than shop employees in order to make money.  So they can sell things we cannot produce because we do not have enough manpower.

Been that way for 15 years.  Not going to change until it's too late I'm afraid.

[Benton]

(11-29-2017, 11:49 PM)GMDino Wrote: I understand the bankruptcy comment and agree on the other two comments.

I spent an unfortunate amount of time just today telling our shop that while I fully understand that we are a production shop the higherups think they need more salesmen than shop employees in order to make money.  So they can sell things we cannot produce because we do not have enough manpower.

Been that way for 15 years.  Not going to change until it's too late I'm afraid.

It's that way pretty well all over. I have the same circular argument with my boss quarterly (which is tomorrow for me, yay!) Basically it goes:

Why are numbers down?
Because you laid off 20% of the staff last Thanksgiving. And 30% the year before that.

Less payroll saves money, why are numbers down?
The remaining staff can't produce enough products to be sold, and part of the people selling had to stop to generate base products.

We're saving money producing fewer products and we've got less payroll, so why are numbers down?
... because we need to layoff more people.

BRILLIANT!

[GMDino]

(11-30-2017, 12:07 AM)Benton Wrote: It's that way pretty well all over. I have the same circular argument with my boss quarterly (which is tomorrow for me, yay!) Basically it goes:

Why are numbers down?
Because you laid off 20% of the staff last Thanksgiving. And 30% the year before that.

Less payroll saves money, why are numbers down?
The remaining staff can't produce enough products to be sold, and part of the people selling had to stop to generate base products.

We're saving money producing fewer products and we've got less payroll, so why are numbers down?
... because we need to layoff more people.

BRILLIANT!

Man I feel your pain.

Today one of my bosses who also sells asked if the shop was behind.  I informed we were.  He said he figured we were because of ONE guy who took off for hunting.  I explained we were behind WITH the one guy.  He said maybe we should schedule some overtime.  I told him we already were working over time.  So he started talking about some product he needed to be put AHEAD of the product we are working on (and behind on).

Six hours later he called to put something completely different in front of everything else because he "probably can sell it" when it is finished.

For the record he does not work out of our office so he has no idea what goes on day to day even though he calls and talks to us multiple times a day.  Including talking to the big boss who does work out of our office.

I just sit and laugh and then scream and then laugh and then go home....lol.

[Nebuchadnezzar]

I know of a company that is still in business that believed in "Man Hours". The entire structure was built around "Man Hours" and constantly looked for ways to increase "Man Hours" without using "Man Power".

What this company does is higher ex-cons, people on probation, functioning alcoholics and drug addicts and immigrants through a "Service". I put Service in quotation marks because this "Service" is a guy who is highered by the company to get employees and is paid $10.00 per hour per employee that speaks little to no English, keeps $7.00 per hour per employee and pays these people $3.00 per hour but houses and feeds them for two years and then they are sent back to wherever they came from.

This company is Union and files bankruptcy ever five years or so then changes the name and continues on making money hand over fist. It really is a crazy scheme but it's all legal.

For instance, if there's a problem with immigration, the company don't get into trouble but the "Service" will. It will be shut down only to be opened back up an hour later under a different name.

Filing bankruptcy gets the company out of all the loans and bills they owe. The new company opens up, buys the building and inventory for an obscenely low amount and then sold at a premium.

The employees have no power since they are all sketchy and need the job to stay out of jail or to feed their habits and the union, which is the USW don't care as long as they get their dues.

It's a joke and places like this need to be shut down except if they are, whoever is in power gets villinized as an uncaring jackass who hates workers or the poor or those trying to straighten their lives out.

I know many contractors and subcontractors who higher illegals or guys in Home Depot parking lots for roofing jobs because they cost half of what an American will cost and they work fast to get as much work as possible.