Trustee Balks At $4.2M Bonuses For A123 Execs

Law360, Wilmington (November 7, 2012, 5:27 PM EST) -- The U.S. Trustee on Tuesday questioned A123 Systems Inc.'s plan to pay up to $4.2 million in bonuses to its top brass while in bankruptcy, saying the bonuses are so easily achieved that the plan is not truly based on performance.

In an objection filed in Delaware bankruptcy court, U.S. Trustee Roberta A. DeAngelis said the electric car battery maker’s “key employee incentive plan” is actually a disguised retention plan — something the Bankruptcy Code restricts when insiders are involved.

A123’s proposal “suggests that the KEIP...
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