Bankrupt Kodak
Photography giants, Kodak are seeking permission to pay out $13.5million in bonuses to their staff in an attempt to try and keep them with the crisis-hit company.
This bonus pot will go to just over 300 members of staff meaning that only one in 25 workers will get any benefit from the payday.
Normally, while a company id bankrupt it is illegal for them to pay any kind of bonuses whilst they’re going through their restructuring procedure, however Kodak are arguing that they are on the verge of collapsing if they fail to convince key employees to stay with them by using bonus payments.
This news come as the firm announced that they have withdrawn their bid to end supplemental health care benefits for around 16,000 Medicare – eligible retirees.
There are two major groups which are in the plans to receive a bonus, ‘Group 1’ and ‘Group 2’. The first group is said to comprise of around 119 managers and they would receive bonuses worth up to 35-50% of their standard base salary. The second group is said to comprise of around 200 members and each of which will share between them about $5million each receiving a quarter or less of their base salary.
If this goes ahead, it will be the first time ever that a company has been allowed to pay its staff any kind of bonus. The reason that the company are wanting to pay their senior employees is because they were last paid with company stock, which now, thanks to the situation the company is in have become worthless.
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