Court Allows Bankrupt Hostess To Give Executives Bonuses
As 18,000 workers are laid off, a federal bankruptcy judge approved Hostess rewarding 19 executives with $1.8 million.
The bonuses do not include pay for CEO Gregory Rayburn, who was brought on as a restructuring expert earlier this year, according to The Associated Press. Rayburn is being paid $125,000 a month.
Former employees are outraged over the bonuses handed out to high ups.
“Anybody’s got a reason to be upset who lost their job if there handing out large amounts of money,” Paul Carroll told ABC News.
In a statement overnight, Hostess said the bonuses are designed to keep top brass from leaving before winding down what’s left of the company “quickly and cost-effectively.”
“I was qualified to draw my pension, with no notice I lost about 70 or 75 percent of it I didn’t work 34 years to lose it,” Carroll said.