Hawker Beechcraft seeks permission to give top execs bonuses

July 16, 2012|By Michael Schwanke | KWCH 12 Eyewitness News

(WICHITA, Kan.) — In an 83-page motion filed Friday, Hawker Beechcraft asks the federal bankruptcy court permission to pay its leadership team more money.

In the motion is says "The debtors' senior management team will play an indispensable role in the performance of the business over the next few months."

It also says "...individual members of the SLT (senior leadership team) have worked around the clock (sometimes literally), shouldering responsibilities that are well above and beyond their day to day duties outside of chapter 11.”

The team is made up of the following positions and according to court papers could see bonuses up to 200% of their base salary:

  • Chairman
  • Executive VP of Operations
  • VP of Human Resources
  • VP of Engineering
  • Executive VP and General Counsel
  • Senior VP of Global Customer Support
  • Chief Financial Officer
  • Executive VP of Customers
“In this case it's important to point out that Hawker is still operating, they’re in bankruptcy and they're trying to do two distinct important things at the same time,” says Wichita bankruptcy attorney Eric Lomas.

Eyewitness News took the motion to Lomas for help understanding what it means.

He says although the company needs permission from the court, he's not surprised because not only is the company in the middle of a bankruptcy and it needs to look good to a potential buyer.

“It's important that Hawker and their management be incentivized to perform as well as they can to either come out of bankruptcy with the healthiest company that they can have, or to create an entity now that's going to be worth more to a potential buyer,” says Lomas.

The plan would also allow the company to give retention bonuses to about 30 other managers in the company.

Hawker seeks permission to give top execs bonuses

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