After filing for bankruptcy and announcing the layoff of thousands of employees, Borders hopes to hand out million-dollar bonuses to its executives.

 

Borders filed for Chapter 11 protection in February, and as part of its restructuring decided to close about 30% of its stores nationwide. The closures will cost 6,000 workers their jobs.

 

In March, CEO Mike Edwards says he wanted to give out $8.3 million in executive bonuses—including $1.7 million for himself. Edwards’ annual salary is $750,000. Of the total, $7.1 million would go to 17 top executives, most of whom have been with the company less than 18 months. Another $1.2 million would go to 25 “director-level” managers.

 

U.S. Bankruptcy Judge Martin Glenn declared that this was not acceptable and suggested instead that the bonuses for Borders’ top five executives be based on how much money they were able to recover from a sale of the company or restructuring.

-David Wallechinsky, Noel Brinkerhoff

 

Borders to Amend Bonuses, Seek Sale or Reorganization (by Tiffany Kary, Bloomberg)

Borders Group Awards Executives Millions for Putting 6,000 Out of Work (by Hrafnkell Haraldsson, PoliticusUSA)

Borders Seeks To Hand Out $8.3 Million In Bonuses (by Peg Brinkley, Wall Street Journal)

Borders’ Bankruptcy Shakes Industry (by Julie Bosman and Michael J. de la Merced, New York Times)