At Hostess, More Than The Recipes Were Rich
Like the top execs pay, even as the company headed for bankruptcy, the union and others say:
The union says there’s another way the Twinkie-maker could have avoided liquidating and laying off all of its 18,500 workers: by paying the executives less money.
In a press release, the BCTGM claimed Hostess tripled the pay of CEO Gregory Rayburn up to $2,550,000 as the company prepared to file for bankruptcy.
Hostess’ creditors accused the company in April of manipulating executive salaries with the aim of getting around bankruptcy compensation rules, the Wall Street Journal reported at the time. In response, Rayburn announced he would cut his pay and that of other executives to $1 until Dec. 31 or whenever Hostess came out of bankruptcy.
1 comment:
Even if they paid the executive $0, that would only be an average of $137/year per employee.
Hardly worth killing your own job. I'm sure the union leaders are happy though, and that is really all that matters to them.
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