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Government blasts Lear’s bonus plan

Posted Wednesday, Jul 22, 2009, 11:17 am in Employee News

The U.S. government’s bankruptcy watchdog says Lear’s $20.6 million bonus plan sets easily achievable goals and is designed mainly to compensate the company’s top-ranking executives.

The Wall Street Journal says Lear wants to pay incentive bonuses to 29 top managers, including its chief executive. Three-quarters of the bonus pool is tied to meeting deadlines in the auto supplier’s bankruptcy case, and more than 27% is earmarked for Lear’s CEO, the story claims.

The U.S. Trustee says Lear has “chosen to ignore” bankruptcy laws and is offering an incentive plan that “is really a disguised retention plan.”

Bonuses intended to keep top executives with a company are generally prohibited under bankruptcy law, according to the story. A spokesman for Lear declined to comment. A court hearing on the proposed incentive program is scheduled for July 30. (The Wall Street Journal)
 
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