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“Hostess Brands wants permission to dole out millions of dollars under an employee bonus plan that would reward some participants for negative earnings posted by the struggling maker of Twinkies and Wonder Bread,” Nasdaq reports. With its financial situation becoming increasingly dire, Hostess is looking to establish what it terms are “realistic” benchmarks as it tries to motivate its managers and sales force to improve the company’s bottom line. Approximately 1,100 employees — none of whom are at the executive level — would be eligible for incentive payments if a judge signs off on the proposal. According to the publication, “The company expects to distribute $2.2 million in total for the first quarter of the 2013 fiscal year and potentially another $2.2 million for the second quarter, as long as Hostess hits targets that are designed to ‘increase earnings, decrease cash burn, and support a safe work environment.’”
Hostess seeks approval to pay bonuses on negative earnings
Hostess Brands is seeking permission from its bankruptcy judge to distribute millions of dollars in employee bonuses, rewarding some for negative earnings.
July 10, 2012