In Exchange For Cutting Benefits, This Bankrupt Coal Company Agreed To Pay Executives Millions

[eridani]

http://thinkprogress.org/climate/2016/02/16/3749331/coal-company-executive-payments/

A bankrupt coal company last month unveiled a plan to pay top executives up to $11.9 million in bonuses over six months as an apparent reward for slashing benefits for workers and dodging environmental clean-up obligations during bankruptcy proceedings. The company, Alpha Natural Resources, is one of the four largest coal companies in the U.S. and filed for bankruptcy last year.

Seven executives and eight other employees who remain unnamed in court documents are eligible for the bonus if they hit certain metrics for cutting costs while protecting the company’s cash reserves. Top executives were already promised $2 million retention bonuses for staying with the company through August 2016. These bonuses are described by Alpha as incentives to ensure high-level performance, something that is apparently not covered by annual salaries. In 2014, as the company was evidently on the verge of financial collapse, Alpha paid CEO Kevin Crutchfield nearly $8 million, and former President Paul Vinning more than $4.5 billion.

The plan to dole out millions of dollars to the same executives that bankrupted the company is the latest in a series of controversial steps taken by the industry giant. Late last year, Alpha also proposed to eliminate health insurance, disability, and other benefits for mine workers.

According to court documents, this move would affect more than 4,500 disabled former employees, non-union retirees, and their families.

[Ilsa]

1. The inept leadership should be fired, not retained

at greater cost. Greedy punks always have a twisted way of looking at things.

[Ed Suspicious]

2. Interesting that HRC was talking quite specifically about

coal workers at a recent debate. She didn't mention the windfall profits for executives, but at least she talked of support for workers.

[Botany]

3. Alpha Natural Resources

5 minutes w/the google machine and it shows:

1) Mountain top removal

2) 227 million in payments for dumping toxins into waterways in 4 states

3) A brand new 115,000 sq. ft home office (2013)

But the coal miners will blame environmentalists for their lost jobs.

[ProfessorGAC]

4. Bonuses For Continued High Performance In A Bankrupt Company

Does nobody in charge see the dichotomy?

[Botany]

6. the company's mission statement ... gag alert

http://www.alphanr.com/about/Pages/mvv.aspx

[ProfessorGAC]

7. The 5th Bullet Point Needs To Be Redacted

If they're in bankruptcy court, obviously that doesn't apply.

[tk2kewl]

5. this shit has to stop

[HughBeaumont]

8. Ah yes . . .

. . . because "retaining executive talent" requires lotteries, or they'll be disincentivized.

While at the same time, taking money away from people who have to spend and save every dime will . . . are you ready . . . motivate them to get a better life (search me how you pay to better yourself when you have no disposable income).

[Populist_Prole]

9. So true

While I'm well past the point of not being surprised by the utter rapaciousness of corporatists anymore, I'm still yet more amazed at the intellectual dishonesty in the double standard that you mention. All the corporate mouthpieces AND the corporate media spout that tripe with such utter glibness. I can't get over it.

[Initech]

10. Is it any wonder why these companies are going bankrupt?

The executives are treating their businesses like it's their personal piggy bank. And it's always the executives who get rewarded and the workers get screwed.