US Trustee Slams $5M Pay Package For Hostess CEO

Law360, New York (February 22, 2012, 9:29 PM EST) -- A U.S. trustee slammed a bid by bankrupt confectioner Hostess Brands Inc. to authorize more than $5 million in potential payments to its CEO, saying Wednesday that the payments appear to be unauthorized retention awards and severance payments.

U.S. Trustee Tracy Hope Davis said Hostess, which filed for Chapter 11 bankruptcy protection on Jan. 11, is trying to circumvent legal limits on retention and severance payments by calling them incentive bonuses and compensation for a noncompete agreement, even while the company tries to void union contracts...
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