Judge denies Visteon’s request to give bonuses to executives
By Andrew C., 30 Aug, 2010. 0 Comments
Judge Christopher Sontchi of U.S. Bankruptcy Court in Wilmington, Del. has approved the continuation of a portion of the employee incentive program Visteon Corp. had in place before it went bankrupt.
It‚ believed that Visteon could pay up to $3.3 million to 83 management employees for lowering employment costs and hitting targets for winning new business. However, the judge said that Visteon would not pay most of those bonuses until it emerges from bankruptcy. Additionally, the judge rejected Visteon‚ request to give 12 board-elected officers a set of bonuses amounting to $8.1 million. In particular, the judge explained that the request was in violation of a law that says insiders may not receive bonuses to keep them at bankrupt companies. Sontchi‚ decision to deny bonuses for the top executives is in line with objections from unions and the U.S. trustee handling Visteon's case.
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