Hostess Twinkies and the CEO Payout

Discussion in 'The Backstage' started by Pennyman, Dec 1, 2012.

  1. Pennyman

    Pennyman Senior Member

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    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:




    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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  2. bertzie

    bertzie Senior Member

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

    LesLuvva Senior Member

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    What were they supposed to do? Should they have given money out to the very same employees who refused to work?:hmm: I don't even mean it sarcastically. How do you reward the very same people who shut the place down?
     
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  4. 6stringelectric

    6stringelectric Senior Member

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    I don't suppose they could have used it to pay the creditors....
     
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  5. SteveGangi

    SteveGangi V.I.P. Member

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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.
     
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  6. LesLuvva

    LesLuvva Senior Member

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    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.:dunno:
     
  7. Kezman

    Kezman Senior Member

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    Bertzie, you jerk! I hope that was in purple :shock:
    My apologies if it was........ I'm color blind
     
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  8. LesLuvva

    LesLuvva Senior Member

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    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.
     
  9. cmh6122

    cmh6122 Senior Member

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    It is the Golden Rule-"Them that has the gold makes the rules."
     
  10. Sloppy Joe

    Sloppy Joe Senior Member

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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.
     
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  11. KSG_Standard

    KSG_Standard Senior Member

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    Judge OKs bonuses for execs in Hostess liquidation - Nov. 29, 2012
     
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  12. LesLuvva

    LesLuvva Senior Member

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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.
     
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  13. Sloppy Joe

    Sloppy Joe Senior Member

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    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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  14. Deftone

    Deftone Senior Member

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

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

    [​IMG]
     
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  15. LesLuvva

    LesLuvva Senior Member

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    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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  16. zeronalo

    zeronalo Senior Member

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    ding ding ding - we have a winner!

    Freddy
     
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  17. PunkerJon

    PunkerJon Senior Member

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    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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  18. FennRx

    FennRx Senior Member

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    Not this shit again.

    Life is hard. Wear a helmet.
     
  19. SteveGangi

    SteveGangi V.I.P. Member

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    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 :rolleyes:

    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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  20. zeronalo

    zeronalo Senior Member

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    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.

    Freddy
     

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