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Unread 12-01-2012, 09:23 AM   #1 (permalink)
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Hostess Twinkies and the CEO Payout

18,000 employees get the sack, retirement funds get left unfilled, yet a handful of high-ranking suits get nearly $100,000 each as Hostess goes under:


Quote:
A federal bankruptcy judge has approved bonuses for executives of Hostess, the maker of Twinkies, who stay on as the company is broken up and sold off.

On Thursday, as part of a plan to liquidate the company and lay off 18,000 workers, a federal judge in White Plains, N.Y., approved paying 19 Hostess executives bonuses totaling $1.8 million...

The decision comes as the company, known for its iconic snack cakes like Ho Hos and Ding Dongs, says it doesn't have enough cash on hand to pay retirement benefits to some former employees.


Bankrupt Hostess to Give Execs Bonuses - Yahoo!



Now I'm 100% certain that the actual details and nuances of Hostess going bankrupt are far too intricate and complicated for such a simple-minded man as myself. But when millions of dollars get paid out - from a bankrupt company - to "suits" and execs instead of being divided up amongst all the employees....


Well, that's when I'm 100% certain that I can smell something that smells a lot like horses.
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Unread 12-01-2012, 09:27 AM   #2 (permalink)
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Re: Hostess Twinkies and the CEO Payout

They totally deserve it for their great work running the company.
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Unread 12-01-2012, 10:22 AM   #3 (permalink)
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Re: Hostess Twinkies and the CEO Payout

What were they supposed to do? Should they have given money out to the very same employees who refused to work? I don't even mean it sarcastically. How do you reward the very same people who shut the place down?
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Unread 12-01-2012, 10:26 AM   #4 (permalink)
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Re: Hostess Twinkies and the CEO Payout

I don't suppose they could have used it to pay the creditors....
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Unread 12-01-2012, 10:30 AM   #5 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Originally Posted by LesLuvva View Post
What were they supposed to do? Should they have given money out to the very same employees who refused to work? I don't even mean it sarcastically. How do you reward the very same people who shut the place down?
Business as usual.

Run the company into the ground, demand more givebacks on top of the givebacks that were already given back, stop putting into the benefits and retirement funds you agreed to, and then reward yourself for nonperformance.

It looks to ME as if they killed the company intentionally in order to shirk their debts and responsibilities and to line their own pockets on the way out the door. How do you reward managers who apparently failed? So much for the "pay for performance" nonsense.

"They totally deserve it for their great work running the company."

Corporate looting.
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Unread 12-01-2012, 10:31 AM   #6 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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I don't suppose they could have used it to pay the creditors....
Perhaps...on the surface, I think that would be the proper thing to do. But I don't know what bankruptcy law allows for in that regard.
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Unread 12-01-2012, 10:34 AM   #7 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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They totally deserve it for their great work running the company.
Bertzie, you jerk! I hope that was in purple
My apologies if it was........ I'm color blind
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Unread 12-01-2012, 10:35 AM   #8 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Business as usual.

Run the company into the ground, demand more givebacks on top of the givebacks that were already given back, stop putting into the benefits and retirement funds you agreed to, and then reward yourself for nonperformance.

It looks to ME as if they killed the company intentionally in order to shirk their debts and responsibilities and to line their own pockets on the way out the door. How do you reward managers who apparently failed? So much for the "pay for performance" nonsense.

"They totally deserve it for their great work running the company."

Corporate looting.
I hear ya, Steve. But I don't know that this was intentional. What amazes me is how polarizing this stuff is. Seems the argument is always so one sided, and neither side takes any responsibility. I remember reading about this a few weeks ago, and one guy who was getting paid at least three times minimum wage to make dough was complaining that he deserved a raise b/c his job was "skilled labor." Come on, man, making dough is not skilled labor.
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Unread 12-01-2012, 10:42 AM   #9 (permalink)
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Re: Hostess Twinkies and the CEO Payout

It is the Golden Rule-"Them that has the gold makes the rules."
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Unread 12-01-2012, 10:45 AM   #10 (permalink)
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Re: Hostess Twinkies and the CEO Payout

It's the new American way of big business. Its much easier and much more profitable for the top executives to sack a company and run off with the money, than to run a company successfully, in many cases.

It's take a special breed of super greediness and lack of conscience pull it off and live with yourself.
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Unread 12-01-2012, 10:48 AM   #11 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Union representatives had opposed the plan, which offers $1.75 million in bonuses ranging from $7,400 to $130,500 for 19 executives, provided they meet certain benchmarks in managing the liquidation. But Judge Robert Drain said the plan was appropriate, citing testimony that it had been independently vetted and was below market value for firms in similar circumstances.

He said the liquidation would call for work "significantly beyond the type of jobs that [the executives] were doing at the start of this case," and called the incentive plan "an exercise of proper business judgment."
He noted that the over 3,000 rank-and-file employees assisting in the liquidation were also getting paid beyond their regular salaries, and that new Hostess CEO Greg Rayburn had ruled out a bonus for himself.
Judge OKs bonuses for execs in Hostess liquidation - Nov. 29, 2012
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Unread 12-01-2012, 10:49 AM   #12 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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It's the new American way of big business. Its much easier and much more profitable for the top executives to sack a company and run off with the money, than to run a company successfully, in many cases.

It's take a special breed of super greediness and lack of conscience pull it off and live with yourself.
Unfortunately, it seems to have really accelerated in the last 10 years...or maybe we just notice it more with the current economy/24 hour news cycle. But I have to think that, if this was illegal, the government (local, state, or federal) would be all over it.
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Unread 12-01-2012, 10:58 AM   #13 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Unfortunately, it seems to have really accelerated in the last 10 years...or maybe we just notice it more with the current economy/24 hour news cycle. But I have to think that, if this was illegal, the government (local, state, or federal) would be all over it.
Your right. It's not illegal.
And, the politicians making the laws are the best money can buy - big business/ corporate money.
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Unread 12-01-2012, 10:58 AM   #14 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Originally Posted by LesLuvva View Post
Unfortunately, it seems to have really accelerated in the last 10 years...or maybe we just notice it more with the current economy/24 hour news cycle. But I have to think that, if this was illegal, the government (local, state, or federal) would be all over it.
Just because it's legal it doesn't make it right.

I'll miss these the most.......

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Unread 12-01-2012, 12:53 PM   #15 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Just because it's legal it doesn't make it right.

I'll miss these the most.......

http://2.bp.blogspot.com/-0kXg5Ua6Eb...tess-ho-ho.jpg
Yup, agreed. And like Sloppy Joe mentioned, best politicians money can buy. Haven't had Hostess snacks in forever, but I'll miss those HoHos as well. No winners here. I hope things change for the better soon.
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Unread 12-01-2012, 12:54 PM   #16 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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I don't suppose they could have used it to pay the creditors....
ding ding ding - we have a winner!

Freddy
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Unread 12-01-2012, 12:57 PM   #17 (permalink)
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Re: Hostess Twinkies and the CEO Payout

Other than that one deep fried twinkie I had at the state fair about 8 years ago... I can't remember the last time I've had a hostess product.
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Unread 12-01-2012, 12:58 PM   #18 (permalink)
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Re: Hostess Twinkies and the CEO Payout

Not this shit again.

Life is hard. Wear a helmet.
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Unread 12-01-2012, 12:58 PM   #19 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Originally Posted by LesLuvva View Post
Unfortunately, it seems to have really accelerated in the last 10 years...or maybe we just notice it more with the current economy/24 hour news cycle. But I have to think that, if this was illegal, the government (local, state, or federal) would be all over it.
A lot of things are not illegal until AFTER "someone" has had enough.
Case in point - the anti-trust laws of the "gilded age" and the safety laws that happened after the "shirt waist" factory fire and the laws/regs controlling just how FILTHY a food processing plant can be before being shut down.

Of course the "big boys" keep screaming that any regulation at all is killing them and we need to trust them. Every time we do, it all goes to shit.

A lot of the mortage forclosure "robo signing" and the misrepresentation and trading off of toxic assets used to be tightly controlled and for the most part illegal. Uh huh. Less regulation wrked great

Any more, it is easier and more efficient and yields faster returns for an "investment group" of vultures to systematically go around killing companies, than in running them properly.

Buy a company, renege on labor deals made by the previous "regime", sell as much of the land and assets as you can, initiate massive layoffs, farm the rest out to India or China, raid the pension funds, gut the health plans, and then declare some version of bankruptcy and give yourself a giant paycheck on your way to the next "investment".

These are not businessmen, they are locusts. They produce nothing, they manage nothing. They only gut and loot.
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Unread 12-01-2012, 12:59 PM   #20 (permalink)
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Re: Hostess Twinkies and the CEO Payout

they got an average of less than $100k each - too much but not by most corp pirate standards. They agreed to stay on and help liquidate the company of which the lawyers will suck dry then the creditors will get the crumbs. If they had hired an outside liquidator it may have cost more.

I worked for 2 companies that went bankrupt and went thru the liquidation process both times, and both were handled differently.

I think there is enough blame for both sides - management and the union. both screwed up,now both are unemployed. Union greed shut the company down but management ran it into the hole.

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Unread 12-01-2012, 01:01 PM   #21 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Just because it's legal it doesn't make it right.

I'll miss these the most.......

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Unread 12-01-2012, 01:02 PM   #22 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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Not this shit again.

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Ooooh an internet tough guy! Ooooooohhh!
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Unread 12-01-2012, 01:28 PM   #23 (permalink)
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Re: Hostess Twinkies and the CEO Payout

The bonuses were contractual obligations, just like the layoff packages that will go out to the workers.

Meanwhile, the top four executives agreed to a salary of $1 each, and the remainder agree to forfeit the raises they had negotiated, in an effort to save the company. The baker's union voted to kill the company, rather than accept further concessions. Mismanagement or no, there is plenty of blame to go around.
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Unread 12-01-2012, 02:01 PM   #24 (permalink)
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Re: Hostess Twinkies and the CEO Payout

Thats just the way it goes. Same for where I work. The Mayor and her croonies get a $35,000 raise. The Cheif, Captains all get $15,000.
Us busy bees on the line.........we get a 3% raise. But.....they rasied the medical premiums so I'm actually taking home $28 LESS.
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Unread 12-01-2012, 02:18 PM   #25 (permalink)
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Re: Hostess Twinkies and the CEO Payout

How did the union make out?
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Unread 12-01-2012, 02:23 PM   #26 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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How did the union make out?
They won...they showed management who was really in charge.
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Unread 12-01-2012, 02:27 PM   #27 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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They won...they showed management who was really in charge.
lol. I'm sure all those out-of-work former employees are celebrating.
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Unread 12-01-2012, 10:38 PM   #28 (permalink)
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Re: Hostess Twinkies and the CEO Payout

Any one being re-numerated in Twinkies?
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Unread 12-02-2012, 05:16 AM   #29 (permalink)
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Re: Hostess Twinkies and the CEO Payout

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lol. I'm sure all those out-of-work former employees are celebrating.
They should be, they are the ones that voted to shut the company down.
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Unread 12-02-2012, 05:39 AM   #30 (permalink)
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Re: Hostess Twinkies and the CEO Payout

Any failure at a large corporation falls at the feet of management, because they are ultimately responsible for anything and everything.

Apparently the company emerged from its 2004 chapter 11 with more debt than when it went in. They were awash in red ink, didn't innovate to meet the demands of a more health conscious market and didn't achieve growth that would enable them to pay down debt. The union played its part in not agreeing to furtber cuts, but the company was already as good as dead.

So on the subject of bonuses, no, I don't think such a poor management job deserves a reward.
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