Fed judge approves $20M bonuses for Energy Future Holding (formerly TXU) execs in bankruptcy hearing
A U.S. bankruptcy judge has approved Energy Future Holding’s plan to award $20 million in bonuses to top executives despite objections from the federal bankruptcy advocate’s office.
At a hearing in Wilmington, Del. Wednesday afternoon, Judge Christopher Sontchi said the bonus programs met legal standards in that it incentivized performance and was not designed solely to keep executives from leaving the company.
“After applying the most stringent test…. I find each plan easily and overwhelmingly meets the standard,” Sontchi said. “It is not a close call.”
EFH, the former TXU Corp., filed for bankruptcy in April, seven years after it was taken private for $45 billion, the largest leveraged buyout in U.S. history.
Read more: http://bizbeatblog.dallasnews.com/2014/10/federal-judge-approves-efh-20-million-executive-bonus-plan.html/
