New York City -- Borders Group won approval of an amended executive bonus plan after a judge sought changes to resolve objections from an arm of the U.S. government that oversees bankruptcies, Bloomberg reported.
Judge Martin Glenn of U.S. Bankruptcy Court in Manhattan said the amended bonus packages, which tie the $6.6 million in payments closer to the financial performance of Borders, were needed so Borders could "maintain its experienced work force."
The revised plan is “is in the best interests of the debtors, their estates, and creditors,” Glenn said in the order.
Ten participants in the bonus plan will be paid a bonus of 40% to 125% of their base salary if the company achieves certain benchmarks, according to court papers, the report said,
The low range of bonuses will be paid if Borders negotiates at least $10 million in annual rent reductions on its store leases, and senior management will get 125% of their base salary if they recover more than $95 million for unsecured creditors, Bloomberg reported.
Borders filed for bankruptcy in February 2011.