Anchor Blue Bonus Plan Is Bogus: US Trustee

Law360, New York (June 29, 2009, 12:00 AM EDT) -- The U.S. trustee overseeing the reorganization of clothing retailer Anchor Blue Retail Group Inc. has objected to the proposed bonus plan, claiming that it is really a retention plan in disguise and improperly compensates the company’s executives regardless of performance.

On Friday U.S. Trustee Roberta A. DeAngelis lodged a trenchant objection in the U.S. Bankruptcy Court for the District of Delaware, contending the proposed $800,000 in bonuses lack any incentive criteria and essentially lavish money on executives for merely seeing that the all-credit stalking horse bids...
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