OT - Bankrupt Toys R Us wants to make sure Dave Brandon gets paid

Submitted by Brhino on

http://money.cnn.com/2017/11/16/news/companies/toys-r-us-executive-bonu…

 

Toys "R" Us has asked the bankruptcy court for permission to pay $16 million in bonuses to its top executives if the company is able to hit some financial targets during the upcoming holiday shopping season. Among the 17 executives who would get payments is chairman and CEO David Brandon, who joined the company in 2015.

NASA really needs to look into Dave Brandon's ability to fall upwards. If we could harness that kind of energy we'd have a Mars colony up and running by the end of the week.

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lhglrkwg

November 16th, 2017 at 3:28 PM ^

I'm white collar, but whenever my business segment is underperforming below a certain level (like 80 or 90% of PO), our yearly bonuses drop straight to zero to emphasize how important it is to hit business targets

For Toys R Us to being going through bankruptcy and still have the stones to ask for the executives bonuses by saying

It is the [company's] employees - and more particularly the senior management team - that must execute at this critical juncture and provide the foundation for a successful turnaround
is a stunningly tone deaf. I wish I could say I was incapable of doing my normal job without getting an enormous bonus

Joined: 07/03/2008

MGoPoints: 87934

jblaze

November 16th, 2017 at 3:39 PM ^

To be fair to DB, we don't know his targets and whether or not he hit those targets. We also don't know his true purpose as CEO. TRU has been hurting and on a downward trend for a while, so Brandon may have been hired to resturcture TRU via bankruptcy so they could emerge a smaller, but porfitable business.

Just the fact they they are filing for bankruptcy doesn't really tell you anything about Brandon (cupboard was bare and all).

Joined: 08/29/2008

MGoPoints: 19345

lhglrkwg

November 16th, 2017 at 4:25 PM ^

I do get annoyed that executive compensation is such a circle jerk in this country that this type of compensation seems appropriate for the executives of a company going through bankruptcy. Obviously, you need to retain competent executives if you want any prayer of emerging from the ashes, but the golden parachute model of things at the top just irks me as someone in a white collar job at a Fortune 100 company.

Once you get into the executive club, how compensation is determined is a joke. It's all executives electing to give other executives huge salaries. There's no market.

Joined: 07/03/2008

MGoPoints: 87934

Kevin13

November 16th, 2017 at 3:52 PM ^

and a big reason we have companies fail in this country, because of the CEO's getting huge golden parachutes....... I could go on and on, but will just leave it at that....

Joined: 01/26/2016

MGoPoints: 16040

jjelliso

November 16th, 2017 at 4:29 PM ^

I've practiced some bankruptcy law.  These are pretty standard asks (unfortunately in my view).  The idea is that you need people knowledgeable about the business and working hard to stick around through the reorganization, which requires them to work more than they otherwise would.  A lot of the time they're just gifts to top executives though.

Joined: 10/04/2008

MGoPoints: 3558

Craptain Crunch

November 17th, 2017 at 7:37 AM ^

While I understand many have a strong dislike for Brandon, you are right that this is normal operating procedure for businesses that go into bankruptcy. The fact some don't take the time to understand this and let their hatred for the guy get in the way of rational thought goes to prove that a Michigan education isn't all that special after all. Toys r us's problems existed long before Brandon took over. What would be funny is if toys r us fires Brandon and hires Hackett away from Ford.

Joined: 05/20/2016

MGoPoints: 1526

grumbler

November 17th, 2017 at 12:22 PM ^

My guess is that yoiu learned to make complete strawman arguments like that one while getting your degree at MSU.   You use bigger words than I'd expect from a OSU grad.

Joined: 08/17/2011

MGoPoints: 14112

treetown

November 16th, 2017 at 4:35 PM ^

Here is some background. Pretty good info and seems fair.

https://www.youtube.com/watch?v=4JYUo9WKkao

If the debt sustained to buy the company is actually on the company books, then keeping up a good flow of income is crucial. But if it was never the goal to keep the company viable but to milk it for what could be taken, then this seems inevitable.

If you are in a hurry skip to the 4 minute mark.

Joined: 11/10/2010

MGoPoints: 6339

Zarniwoop

November 16th, 2017 at 5:54 PM ^

If executives of a bankrupt company need 16 million dollars to "perform at a high level", they should be immediately fired.

You ran your company into bankruptcy or took on the risk associated with joining a poorly performing company. Also, you are already filthy rich.

In closing, fuck yourself.

Joined: 09/10/2013

MGoPoints: 10498

turtleboy

November 16th, 2017 at 7:17 PM ^

Over under on his next job drawing a multi million dollar salary heading a huge established "non profit" charity that does absolutely nothing except posture to raise billions in tax free donations..

Joined: 04/22/2011

MGoPoints: 35130

DarkWolverine

November 16th, 2017 at 9:04 PM ^

Anyone that isn’t a criminal and donates money, as Brandon has done for many years and many millions, is OK with me. The more he gets in outrageous compensation the more he might donate.

Joined: 01/02/2011

MGoPoints: 1905

UM Griff

November 16th, 2017 at 9:12 PM ^

A poor excuse for a human being. He is so totally into himself that he sees nothing else. With all the power he has, he has done nothing for the greater good.

Joined: 12/03/2016

MGoPoints: 9833

42championships

November 16th, 2017 at 11:10 PM ^

We need our athletes, CEO’s, entertainers, and others to be pulled into the same pot. There are a lot of folks that work for athletic departments and pro sports teams that get paid like the workers at TRS. It’s no different in that people get overpaid for many reasons and it is excessive for sure.

Joined: 09/29/2014

MGoPoints: 1