"AP is reporting that the Irving, Texas company is planning to ask a bankruptcy judge to grant approval of bonuses totaling up to $1.8 million for its executives....It’s tough to see why managers should get bonuses for driving a company into the ground and sacrificing some 18,000 jobs. Hostess had become horribly insolvent, with a net loss of $1.1 billion in fiscal 2012 on revenues of $2.5 billion. The company also reportedly has $111 million in unfunded pension obligations."Gee this could be a good class discussion!
Thursday, November 29, 2012
Why Should Hostess Executives Get The Bonuses They're Demanding? - Forbes:
Former baseball star Doug DeCinces indicted for insider trading - Yahoo! Finance:
"DeCinces was charged with 42 counts of criminal securities fraud and one count of money laundering over the 2008 purchase of stock in a medical device company based on insider information, according to an indictment filed in a federal court in Southern California.
DeCinces, 62, bought $160,000 worth of stock in Advanced Medical Optics Inc, after a "close personal friend" alerted him to an impending takeover bid by Abbott Laboratories, according to prosecutors.
He sold his stock shortly after the takeover bid was announced, making $1.3 million in profits, the department said."