Tag Archives: Hostess

Hostess Employees Get 8% Pay Cut, Management Gets $1.8m Bonuses

I don’t know why I continue to be amazed at stories like this…..

Corporate America is really big on “accountability” and “results driven performance.”

At the worker’s and Middle Management level….

Personally, I think these “bonuses” and Golden Parachutes for failed upper Management ought to be taxed at round the 99% rate if the Company is in Bankruptcy.  If the Company shows a profit, then regular tax rates should apply.  That would drive true accountability and performance based rewards at all levels….

I know, impossible to enforce, but I can dream of wage equality, can’t I?

As I said earlier, it’s really hard to fail making junk food for Americans…..

From AmericaBlog.com:

You remember Hostess.  Home of the Twinkie.  Gone bankrupt and closing down after the previous CEO tripled his salary, knowing full well they were on their way to the poor house.

Well here we go again, Lucy.

While it’s worth noting that current Hostess acting CEO Gregory Rayburn, to his credit, is not accepting a bonus, you have to ask yourself why anyone would be getting a bonus in the first place, with the company in bankruptcy.

Well.  It seems that at the same time the company went into bankruptcy, and now is cutting employees’ pay by 8%, just in time for Christmas, the management team finagled itself a whopping $1.8m bonus.  ”The money is intended as an incentive for 19 top-level managers to remain with the Twinkies and Ding Dongs maker to oversee its liquidation,” the LA Times reports. Right, because you wouldn’t want to lose any of the winners that oversaw a company going into bankruptcy.

via Hostess employees get 8% pay cut, management gets $1.8m bonuses.

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Hostess wins OK to give execs up to $1.75 million in bonuses

This is a real example of what is totally wrong with the Corporate Culture and Corporate accountability in America….

These guys destroyed a profitable, iconic American Company.

Even though it makes nasty, bad-for-you treats full of preservatives and strange chemical things…

But that’s what America seems to want.  It’s really hard to fail at this….

And they failed.  And are going bankrupt.  Bad management is the only excuse…

And they are getting bonuses for this?  Talk about Bain Capital as a business model….

I guarantee the hourly workers aren’t getting any bonuses for making the product;  only those whose “leadership”  destroyed the company….

From the L. A Times:


Hostess Brands Inc., in the midst of winding down its business, won approval Thursday from a federal bankruptcy judge to give as much as $1.75 million in bonuses to its executives.

The money is intended as an incentive for 19 top-level managers to remain with the Twinkies and Ding Dongs maker to oversee its liquidation.

The payouts will be granted only if managers “achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down,” Hostess spokesman Lance Ignon said.

The maximum bonus amount, Ignon said, represents 0.07% of Hostess’ revenue and 0.17% of the value of its assets and is below the average for bonuses in comparable bankruptcy cases. Hostess Chief Executive Greg Rayburn would be not be eligible for a bonus, Ignon said.

via Hostess wins OK to give execs up to $1.75 million in bonuses – latimes.com.

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