Bankrupt Solyndra seeking to pay bonuses

Posted by on Jan 12, 2012 at 12:40 pm

Now seems an unlikely time for handing out bonuses at bankrupt Solyndra LLC, but that’s the plan of company attorneys intending to dole out up to a half-million dollars to persuade key employees to stay put.

Nearly two dozen Solyndra employees could receive bonuses ranging from $10,000 to $50,000 each under a proposal filed by Solyndra’s attorneys in U.S. Bankruptcy Court in Delaware.

The attorneys say the extra money will add motivation at a time when workers at the solar company have little job security and more responsibilities because so many of their colleagues have been fired.

The names of the bonus-eligible employees are not disclosed in the court filings that outline the bonus proposal. None of the employees is among the so-called corporate “insiders” — top officers or members of the board of directors, records show.

The proposed bonus recipients include nine equipment engineers, six general business and finance employees and up to two information technology workers.

The biggest bonus, for $50,000, would go to a Solyndra employee whose job title is listed as a senior director with a base salary of $206,499 per year. Two senior managers stand to receive bonuses of $30,000 and $32,500.

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One Response to “Bankrupt Solyndra seeking to pay bonuses”

  1. chris on 13/13/12 at 7:16 pm

    As someone who has been involved in trying to maximize recoveries from lots or problem companies and restructurings, you want some incentive structure set up with payment coming after objectives that benefit creditors and shareholders are met.

    The reality for people that stay on, or come in, to wind up affairs is that you are there to work yourself out of a job as quickly as possible. If you don’t pay someone internally, you pay someone on a contract basis and I can guarantee you that the outside contractor will set up incentives for the outside workers. there is good reason for any payments to be vetted by a bankruptcy judge.

    The most egregious situations often involve huge fees paid to lawyers and approved by lawyers/judges for work that does very little to get cash back to those who took losses.