Report: Borders plans to pay $8.3 million in bonuses

New York City -- Borders Group, which filed Chapter 11 bankruptcy in February and has announced plans to close about a third of its stores, said it plans to pay key employees as much as $8.3 million in incentives and retention bonuses, Bloomberg reported.

The retailer asked a judge to approve its plan in a filing Thursday in U.S. Bankruptcy Courty in New York. Borders said it has historically compensated employees through incentives.

The size of the awards would be calculated after the company files a reorganization plan or gets approval for a sale of the company, according to the report.

Under the incentive program, Borders CEO Michael Edwards, would get as much as $1.7 million in bonuses, according to the filing.

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