Lessons On Exec Bonuses From Sports Authority Bankruptcy
Law360, New York (October 26, 2016, 4:34 PM EDT) -- A recent, and highly publicized, decision from the case formerly known as Sports Authority, In re TSA WD Holdings Inc. et al., Case No. 16-10527 (MFW), Bankr. D. Del. (Docket #2863, Aug. 31, 2016), allowed the defunct company to pay three unnamed senior executives $1.425 million in "incentive pay" to remain with the company and oversee its liquidation.[1] Judge Mary Walrath granted Sports Authority's[2] motion for order (a) approving modified executive incentive program and authorizing payments thereunder and (b) authorizing the debtors to file the unredacted modified key employee incentive program under seal (Docket #2746) (the "EIP motion") over the strenuous objection of the U.S. trustee (Docket #2809) (the "UST objection"), and only after she had denied a similar request from the debtors a month earlier....
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