The Justice Department’s bankruptcy watchdog agency opposes a move by Hawker Beechcraft to pay eight senior executives more than $5.3 million in bonuses.
In a court filing yesterday, U.S. Trustee Tracy Hope Davis argued that Hawker Beechcraft hasn’t shown that its proposed bonus plan isn’t a disguised retention plan. Bonus plans are allowed, but must do more than simply reward managers for staying during a bankruptcy reorganization. Hawker Beechcraft calls it an incentive award and says its plans are consistent with its commitment to strongly emerge from bankruptcy.