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Fighting with Toys R Us Plans to pay executives Millions in bonuses: bidirectional: NPR



A bankruptcy court judge approved a plan for Toys R Us to pay its top executives millions in bonuses, even as the company struggles to stay afloat.

Eric Gay / AP


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Eric Gay / AP

A bankruptcy court judge approved a plan for Toys R Us to pay its top executives millions in bonuses, even as the company struggles to stay afloat.

Eric Gay / AP

A bankruptcy judge has granted permission to the Toys R Us distressed to pay millions of dollars in bonuses to executives after the company argued that it was necessary to motivate its high command during the holiday shopping season.

Judge Keith Phillips The company can grant $ 14 million in incentives to its top 17 executives. One caveat: First fiscal year earnings must reach $ 550 million. Executives could receive even more if profits reach $ 641 million, but company attorney Joshua Sussberg said the goal would be "incredibly difficult to achieve," Reuters reports.

In a presentation, Toys R Us argued, "it is the [company’s]] employees, and more particularly the management team, who must execute at this critical time and provide the basis for a successful change," reports CNN Money.

Phillips authorized the plan on the objection of Judy Robbins, a lawyer with the US Trustee Program. UU The Department of Justice, which has the task of serving the interests of creditors.

"It defies logic and wisdom, not to mention the Bankruptcy Code, for a bankrupt company to propose more multimillion-dollar bonuses for top managers of a company that started the year with employee layoffs and ends in the middle of the season. bankruptcy vacation, "Robbins said in his presentation, according to CNN Money. "Apparently, this Christmas, Toys" R "Us intends to offer not only to children their best smiles of the year, but also to those inside.

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