GT Advanced wants bankruptcy judge to approve millions in executive bonuses

“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.

Related articles:
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

32 Comments

  1. You don’t pay the bonuses now. What are you rewarding? Pay the bonuses,if you must, when they have gotten the company out of the mess they got them into. If they’re only there for the bonuses, they are not good for the company. You know what to do then.

    1. I am sure that these executive expect the company’s rank-and-file worked to diligently and competently perform their jobs in the absence of “pay enhancement.” These executives did not even display the competence to justify their own, undoubtedly inflated, salaries. The company might be better off if they leave.

      If I were the judge, I would laugh in their faces.

    1. Agree 100%.

      Especially sense they raked in MILLIONS already from stock sales before they filed bankruptcy.

      Freak’n con job plain and simple. These fuskers need to go to jail, not be given bonuses.

  2. If this doesn’t SCREAM arrogant CEO sense of entitlement regardless of success or fail (thus no real responsibility) I don’t know what does. Companies are just money machines to over-enrich pampered CEO’s first and foremost.

    Personally I think every one of these GT executive jerks should be taken out and summarily flogged within an inch of their lives instead.

  3. Sounds like the bankers huge bonus program as they destroyed the economy. They will probably get the bonuses, as they say, the rich get richer and the poor get poorer. The USWay.

  4. Should outlaw this shit. Or, because the rich ass fscks in charge would never allow their precious executive bonuses to become outlawed, require some sort of match. How about this: every million dollars spent “executive bonusses” must be matched by three million dollars spent on something that actually helps our species. Who wants that to make that a law?

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