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You don’t reward failureSo, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
You don’t reward failureSo, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
The idea isn't to "reward failure" but to try and protect the value of the company the best they can to protect the interest of the creditors.
Sears has been failing in slow motion for a very long time, to blame it all on the current crew of executives wouldn't be fair.
So, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
So, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
No, but it beggars belief that the stock holders aren't raising up a shit storm over this. You should only get bonuses for doing a good job, these bonuses are the upper level assholes looting the dead body that they helped kill.
This is what we mean when we talk about a rigged economy. If Sears has $25 million to give bonuses to executives after closing over 100 stores, why is the company telling thousands of laid off employees they don't have the money to pay their severance?
Sears bankruptcy court OKs $25 million in bonuses for top execs
So, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
No, but it beggars belief that the stock holders aren't raising up a shit storm over this. You should only get bonuses for doing a good job, these bonuses are the upper level assholes looting the dead body that they helped kill.
You don’t reward failureSo, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
The idea isn't to "reward failure" but to try and protect the value of the company the best they can to protect the interest of the creditors.
Sears has been failing in slow motion for a very long time, to blame it all on the current crew of executives wouldn't be fair.
How about blaming them for raiding the remaining assets while the employees and creditors suffer?
So, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
No, but it beggars belief that the stock holders aren't raising up a shit storm over this. You should only get bonuses for doing a good job, these bonuses are the upper level assholes looting the dead body that they helped kill.
This is what we mean when we talk about a rigged economy. If Sears has $25 million to give bonuses to executives after closing over 100 stores, why is the company telling thousands of laid off employees they don't have the money to pay their severance?
Sears bankruptcy court OKs $25 million in bonuses for top execs
I see a ton of crap reasoning going on here in other posts.... like someone said they were "raiding the assets while employees and creditors suffer."
None of that is what is actually going on. Please hear me out.
Now let us say, that your 401K has stock in Sears. Luckily I have avoided any retail stock, other than Walmart and perhaps one other I can't remember.
You as an owner in that stock, you want to regain as much value as you can. One way that you can avoid having your stock turn into expensive toilet paper, is by having the company end up get sold off, rather than liquidated.
If the company is liquidated, whatever money you bought that stock with, is gone. It is just toilet paper stock now.
So you as an owner WANT someone to buy that stock. Even if the company buying out Sears, only pays 50% of the value in stock, that would turn $200 in Sears stock, into $100 of stock in a new company, that is hopefully growing and profitable. In short, you save money.
But here's the key.... the potential buyer to Sears, has some requirements on the buyout. They want Sears to be at least somewhat stable, before they are willing to buy out the company.
Think about it logically... if you see a business that is losing millions every year, would you buy it? Answer: No. Why would you buy out something that is losing money hand over fist, so that now you can lose money yourself?
The purchasing company, has some requirements. These requirements have to be met, or they won't buy out Sears. This puts Sears in a very bad spot, because executive management is bailing out on them, as would be natural. If you saw your company was losing money, and laying people off left and right, and you had management skills that were in demand.... would you not leave? Would you not be looking for other employment as quickly as possible?
So Sears needs to keep as much of the executive staff as they can, to attempt to turn the company around to meet those financial requirements, in order to get the company sold off.
The bonuses for these executives is tied to the executives meeting the financial requirements to sell the company. If they don't meet their goals, then they don't get the bonus. If they meet the goals, this is good for everyone, especially you the owners of Sears Stock.
By the way, this would be good for many of the laid off employees as well. Sears had an employee stock purchase program. I would guess that many former employees have stock in the company, that if the company is liquidated, would mean that lost all their money.
I'm all for severance packages when you can get them.... but if the company closing stores, and filing for bankruptcy... then you don't get them. That's how that works. I'm not sure what the outrage is. It isn't like you were entitled to a severance package. I've only had 1 of those in my life. It was nice, but I didn't think I was owed something.
You don’t reward failureSo, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
The idea isn't to "reward failure" but to try and protect the value of the company the best they can to protect the interest of the creditors.
Sears has been failing in slow motion for a very long time, to blame it all on the current crew of executives wouldn't be fair.
How about blaming them for raiding the remaining assets while the employees and creditors suffer?
Getting paid for productive work is not raiding the company, bub.
You don’t reward failureSo, would it be better for management to just walk away and for a bunch of even more expensive consultants to takeover to oversee the winddown/restructuring?
The idea isn't to "reward failure" but to try and protect the value of the company the best they can to protect the interest of the creditors.
Sears has been failing in slow motion for a very long time, to blame it all on the current crew of executives wouldn't be fair.
How about blaming them for raiding the remaining assets while the employees and creditors suffer?
Getting paid for productive work is not raiding the company, bub.
How can I get a job like that? I can bankrupt a company with almost no effort. closing it down, stiffing the creditors, and reducing the stock value of the shareholders to zero is even easier!
You don’t reward failure
The idea isn't to "reward failure" but to try and protect the value of the company the best they can to protect the interest of the creditors.
Sears has been failing in slow motion for a very long time, to blame it all on the current crew of executives wouldn't be fair.
How about blaming them for raiding the remaining assets while the employees and creditors suffer?
Getting paid for productive work is not raiding the company, bub.
How can I get a job like that? I can bankrupt a company with almost no effort. closing it down, stiffing the creditors, and reducing the stock value of the shareholders to zero is even easier!
Have you actually worked in a large organization? Sears' decline started long ago. Blaming it all on the current staff is nonsense. It's not going to do anyone any good if the employees all leave. You expect to be paid for your work; so do they. And they don't get the bonuses if they don't meet the financial goals.
Republicans will say: let them have their money, they worked hard for it.
The idea isn't to "reward failure" but to try and protect the value of the company the best they can to protect the interest of the creditors.
Sears has been failing in slow motion for a very long time, to blame it all on the current crew of executives wouldn't be fair.
How about blaming them for raiding the remaining assets while the employees and creditors suffer?
Getting paid for productive work is not raiding the company, bub.
How can I get a job like that? I can bankrupt a company with almost no effort. closing it down, stiffing the creditors, and reducing the stock value of the shareholders to zero is even easier!
Have you actually worked in a large organization? Sears' decline started long ago. Blaming it all on the current staff is nonsense. It's not going to do anyone any good if the employees all leave. You expect to be paid for your work; so do they. And they don't get the bonuses if they don't meet the financial goals.
You need to focus, Boe. Nobody is blaming them for the demise of Sears, which has been mismanaged for decades. they are talking about giving bonuses to executives instead of using the money to pay off creditors, severance for laid off employees, and failure to deliver value to shareholders.
You need to focus, Boe. Nobody is blaming them for the demise of Sears, which has been mismanaged for decades. they are talking about giving bonuses to executives instead of using the money to pay off creditors, severance for laid off employees, and failure to deliver value to shareholders.
You need to focus, Boe. Nobody is blaming them for the demise of Sears, which has been mismanaged for decades. they are talking about giving bonuses to executives instead of using the money to pay off creditors, severance for laid off employees, and failure to deliver value to shareholders.
If the court fails to approve this compensation to Sears executives, a number of them will jump ship at the earliest opportunity, which could actually reduce the amount of money available to pay off creditors as well as strip Sears of the ability to reorganize with a lot of their top people working across town at Walmart or Amazon. Remember other retailers are vultures who are going to feed off of Sears stinking carcass, and they want the best executives they can find at failed retailer to come over
25 million spread over 100 top level employees— Not fair, but not really that much all things considered.This is what we mean when we talk about a rigged economy. If Sears has $25 million to give bonuses to executives after closing over 100 stores, why is the company telling thousands of laid off employees they don't have the money to pay their severance?
Sears bankruptcy court OKs $25 million in bonuses for top execs
25 million spread over 100 top level employees— Not fair, but not really that much all things considered.