Trustee Objects To Circuit City's $2.3M Bonus Plan

Law360, New York (February 25, 2009, 12:00 AM EST) -- A U.S. trustee has objected to Circuit City Stores Inc.'s plan to pay 16 of its top officers up to $2.3 million while it winds down its operations, saying that the payment is unnecessary and violates bankruptcy law.

U.S. Trustee W. Clarkson McDow Jr. said in an objection filed Tuesday in the U.S. Bankruptcy Court for the Eastern District of Virginia that Circuit City's plan, which outlines incentives for various employees during the wind-down, violates the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, which...
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