The Sears story just gets curiouser and curiouser. Sears has filed for Chapter 11 bankruptcy. The former chairman and CEO, Edward Lampert, resigned from those positions because his hedge fund, ESL Investments, Inc. is the only bidder for the purchase of Sears. This past week, Sears lawyers filed a request with the bankruptcy court to pay &8.5 million in bonuses to 18 executives, including the CFO and presidents of the various Sears operations. These executives were already the beneficiaries of pay-to-stay salary increases generally given to executives to get them to stay when a company is in Chapter 11.
The outcry from employees who lost their jobs, will lose their job, or have not been paid has been has been substantial. A court will review the decisions by Sears and the actions of the officers in accepting these assignments.
Under Chapter 11, the bankruptcy court (who can throw the case over into another court system), will need to. determine whether the goals are sufficient and whether those goals will help the company.
Funny how companies want to desperately hang on to those who drove the company into the ground. And doesn’t/didn’t Mr. Lampert have a conflict? Ah, the sophisticated ethics of high finance and low performance.