Judge Denies Dana’s Executive Compensation Bid

Law360, New York (September 5, 2006, 12:00 AM EDT) -- A federal judge has denied Dana Corp.’s proposed incentive plan, under which the bankrupt auto parts maker would have shelled out almost $10 million to retain key executives upon its emergence from bankruptcy.

In Tuesday’s decision, Judge Burton R. Lifland of the U.S. Bankruptcy Court in Manhattan ruled that the plan violated the newly passed Section 503 of the Bankruptcy Code, “designed specifically to limit and restrict lavish insider retention and severance bonuses.”

“This court cannot categorize a bonus of this size and form as an...
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