“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
Bastards!
Scumbags
As I recall one of their head honchos sold a boatload of company stock right before they declared bankruptcy. It’s kinda like he knew something wasn’t quite right.
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.
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.
Pay the bonuses in stock, using the pre-bankruptcy prices.
The amount of their bonus should reflect the hundred-fold drop in the stock price.
This should be simple: No.
It is astonishing that such a question can even be asked in a courtroom of any country.
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.
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.
Flogging seems rather excessive, but I agree with the rest of your post.
Just suggesting another excessive idea on top of another. 🙂
I have a bonus for you GT execs: Go directly to jail. Do not pass Go. Do not collect $200.
What unemployment is not motivation enough anymore – What nonsense
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.
But the 1% of the 1% deserve every penny they get, because they do all the sweating and working. I say they deserve it.
Um… you did forget the /s, right?
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?
But if you don’t pay their top executives bonuses they will leave . . . Hmmmmm.
They have GT Advanced on their resume. Where are they going to go?
Publish their names! What is this “unidentified senior executives” crap…? If this extortion is the right thing to do, what are they afraid of?
Typical executive mind set. Layoff all the hard working people that will have to scratch out a living. While they take in millions and sit on there ass and keep enjoying life. Why doesn’t the judge split those funds out to all the company workers and the executives get NOTHING since they have plenty of money already to survive. The executives failed and do not deserve anything!
and don’t forget the stockholders who took it up the rear end.
Uh, NO.
the court should hand each executive a bag filled with $2.2 million in cash and then burn them in front of their children
Talk about an “entitlement ” mindset. As I read the justification, they’re going to screw up if they don’t get the bonus. How would anyone be able to tell?
Same BS from Corporate America – heads I win, tails you lose. The want big bonuses when the stock goes up for having done a good job (even if the stock price rise is in line with the overall market), and big bonuses when the stock is down (to “motivate” them to turn around the company).
Your name is or is not mud, should be incentive enough.
Usual republican bullshit. ‘We take all the risk, so we deserve all the reward!!!’, right up until their lousy decisions tank the company, wipe out earned salaries and pensions of their employees. Then it’s all ‘we want the big government to cover our asses, and we need outrageous bonuses for doing a shit job and and leaving everyone screwed!’ Where’s that risk now, eh? The only people who really risked were the employees who trusted these scumbags with their pensions, future and livelihood.
Screw those execs. Pay the cost to be the boss.
The bankruptcy judge’s duty is to make sure that the CREDITORS get as much as possible of what is owed to them. I would expect this judge to issue a writ of “fuck you, pay your debts” to the petitioners.
…necessary to motivate ‘the key drivers’ in GT Advanced’s effort to emerge from bankruptcy
What a pile of horse shite. Total rubbish company.
What are they going to do, quit for another company? Who would hire these people? Anyhow, they clearly have no idea what they’re doing.
This is the same argument the banks used to try to justify giving bonuses to execs from Gov bailout money. “We have to give bonuses to help keep the “talent” in the board room” or something to that effect. But if they were so “talented”, why do you need to be bailed out, or have bankruptcy protection? The Judge should make the execs pay for the bankruptcy proceedings out of their own pockets.