“GT Advanced Technologies Inc., the manufacturing company that filed for bankruptcy protection in October after a botched deal with Apple Inc., wants to pay millions in bonuses to senior executives, the Wall Street Journal reported Tuesday,” Jason McCormick reports for Silicon Valley Business Journal.
“The manufacturer seeks the approval of a federal judge to give $2.275 million to nine unidentified senior executives under a bonus program, according to court documents reviewed by the Journal,” McCormick reports. “GT Advanced owes Apple $439 million.”
“Pay enhancement is necessary to motivate ‘the key drivers’ in GT Advanced’s effort to emerge from bankruptcy, said lawyers, according to the Journal,” McCormick reports. “The bankrupt manufacturer’s stock no longer provides good motivation for performance by company leaders, the Journal reported. The stock price since October fell from more than $10 to 36 cents… A second proposal for executive bonuses could benefit 28 people who, according to GT, don’t qualify as ‘insiders,’ the Journal said. That program would reportedly pay out $1.4 million.”
Read more in the full article here.
MacDailyNews Take: Failed to deliver so spectacularly they bankrupted the company. Want to be rewarded anyway.
Memo to Apple: In the future don’t attempt to do business with greedy incompetent amateurs.
GT Advanced CEO sold 9,000 shares the day before Apple’s iPhone 6/Plus event – October 7, 2014
GT Advanced COO sold $2 million in stock after sapphire deal with Apple began to sour – October 14, 2014
Apple, GT Advanced and the ‘boule graveyard’ – November 20, 2014
Lack of experience, mismanagement doomed GT Advanced’s sapphire adventure – November 19, 2014
Court unseals GT Advanced documents: Apple says it ‘bent over backwards’ to help sapphire supplier – November 7, 2014
GT Advanced blames ‘oppressive and burdensome’ Apple terms in quest to ax sapphire production – October 10, 2014