Reuters: Bankruptcy News: ResCap exec bonus plan rejected by US judge

Reuters: Bankruptcy News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

ResCap exec bonus plan rejected by US judge Aug 28th 2012, 22:23 Tue Aug 28, 2012 6:23pm EDT Aug 28 (Reuters) - A federal bankruptcy judge on Tuesday rejected Residential Capital LLC's proposal to pay as much as $7 million of bonuses to 17 senior executives, saying the payout was primarily a reward for staying in their jobs. U.S. Bankruptcy Judge Martin Glenn said the "key employee incentive plan" proposed by the mortgage unit of Ally Financial Inc did not link the payouts closely enough to "challenging financial and operational goals" for the businesses, and that 63 percent may vest upon the sale of some of ResCap's main assets. Glenn said the plan "is primarily retentive in nature," and "appears to attempt an end-run" around federal bankruptcy laws. He gave ResCap permission to draft a modified plan.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions