|
| |
|
| |
|
|
|
July 7, 2005Execs ask for bonuses'Key employees' would get more than $100KByRecord-Eagle staff writer CENTRAL LAKE - Second Chance Body Armor executives want more than $100,000 in individual bonus packages for themselves as the bankrupt bulletproof vest-maker faces an auction sale late this month. Company officials asked the U.S. Bankruptcy Court in Grand Rapids to institute a "key employee retention program" as Second Chance sells off its assets. "(Second Chance's) prospects of finding a purchaser for its assets would be impaired if its existing key employees sought new employment during the sale process," stated Second Chance attorney Gordon Toering in his motion to the court. "(Second Chance) has determined that it is necessary to offer such key employees a retention bonus to encourage them to remain with the company," Toering stated. The listed key employees in the motion are board chairwoman Karen McCraney; vice president of operations J. Larry McCraney; vice president of research and development Thomas E. Bachner; vice president of sales Matt Davis; chief financial officer Brian Breneman; and controller Ed Kiessel. Proposed bonuses include: - Three months severance pay for Bachner, Breneman, Davis, Larry McCraney and Kiessel if the employees are not hired by Second Chance's buyer, subject to a cap of $192,500 in total. - Individual "incentive bonuses" of 2 percent of the net proceeds above $9 million of a Second Chance sale for all listed executives with the exception of Kiessel, who would receive 1 percent of the net proceeds. If Second Chance's assets were to sell at auction for $15 million, those company executives receiving a 2 percent incentive bonus would each garner $120,000. The company's court motion also calls for performance bonuses for executives related to measurable business activities. The bonuses would be in effect if the executives remain with the company through the closing of a sale transaction or until they were fired, under the company's proposed order. Messages left with Second Chance officials were not returned Wednesday. A hearing on the Second Chance proposal is set for Monday in U.S. Bankruptcy Court in Grand Rapids, where a judge will also consider the company's plan for sale. See Related Stories: Second Chance to auction off assets - July 7, 2005 Elmer's owner is buyer of bulletproof vests - July 6, 2005 Donor may finance Grand Traverse County vests - July 2, 2005 Second Chance Body Armor woes expand with Fed suit - July 2, 2005 Vest recall puts police in bind - June 30, 2005 Second Chance urges customers to replace all vests - June 23, 2005 Second Chance efficiency falls short at Alabama plant - June 7, 2005 Battered Second Chance may shut down operations - May 18, 2005 Village mourns loss of Second Chance Body Armor - April 23, 2005 Lawyers file for class action against Second Chance Armor - April 10, 2005 Employees: Second Chance Armor move will hurt town - March 26, 2005 Second Chance Body Armor moving to Alabama - March 25, 2005 Second Chance trustee seeks sale of president's assets - March 12, 2005 Study finds Second Chance vest inserts inadequate - February 8, 2005
|
|
