Hostess

[scottd]

"As the company was preparing to file for bankruptcy earlier this year, the then CEO of Hostess was awarded a 300 percent raise (from approximately $750,000 to $2,550,000) and at least nine other top executives of the company received massive pay raises. One such executive received a pay increase from $500,000 to $900,000 and another received one taking his salary from $375,000 to $656,256."

That's what I based my statement on.

[Leazie]

Hostess and the union have now agreed to try to come to terms to avert a shut down.

I used to love Devil Dogs (also made by Hostess) when I was growing up. I am sure they aren't as good as I remember them to be.

[RockyandLily]

My Mom loves the hostess products , I think that they are really dry and I'd rather make my own baked goods. Plus they always made me feel sick after eating them, too much sugar maybe.

[scottd]

I couldn't tell you the last time I had something like a Twinkie. I cut all of that out of my diet a while ago and try to eat fresh fruit instead.

[Mom of 4]

The HQ is 30 minutes from our house, so we've been hearing about this for awhile. Don't believe everything you've read on this in the last week.

Hostess filed for reorganization because demand was down (eating healthy anyone?) and they were tied into union contracts that provided for a high salary and benefits, but didn't allow for a profit. The bakers (the group striking, but a small number of the total employees) were warned that if they didn't agree to the pay cut (8% immediately, with a 2% raise for each of the next four years), the company had no choice but to close. One of the union reps was on camera here just last week stating that Hostess would never close, it was just a tactic to force them to accept the pay cut.
However, expenses at Hostess were so high, they couldn't find another company to take them over or even combine with them.

People fail to realize that businesses have to make plans for several months in advance. My husband's company tends to make the most money from May to August and in September. But they still have bills to pay every month.

And there is a trickle down effect - I've lived it. People don't get paid, so they can't pay their bills, which means other companies can't pay their bills and so on.

I don't like the bonuses to the executives, but my husband explained that it a move to prevent a mass exodus of the people who can actually run the company or know who might buy part of it. It is to the benefit of the creditors. Getting less on the dollar is still better than getting nothing on the dollar. It has to be enough money to tide the executives over until the situation is resolved and they can get a new job. It is very long hours and lots of travel - very stressful.

The judge ordered the union of company back to mediation, but has a court date for Wednesday. Unless the union backs down, I don't see Hostess in business for long.

I feel sad for the non-bakers, whose jobs will be lost due to the way their co-workers voted. And the bakers are going to have a bit of a hard time finding another job, let alone one that pays what they were paid (or even the 8% less). There are a limited number of jobs for bakers.

[aniela]

Originally Posted by scottd

That's what I based my statement on.

Link has the following which is what I mainly wanted to point out:
"CORRECTION: An earlier version of as well as an earlier headline of this post incorrectly stated that Greg Rayburn received a 300 percent raise as CEO of Hostess as the company approached bankruptcy. Rayburn wasn't CEO of Hostess until after the company filed for bankruptcy. The post also incorrectly stated that he was paid a salary of up to $2,550,000 per year. His salary when he joined the company was $100,000 per month, according to a company spokesman."

[scottd]

Originally Posted by aniela

Link has the following which is what I mainly wanted to point out:
"CORRECTION: An earlier version of as well as an earlier headline of this post incorrectly stated that Greg Rayburn received a 300 percent raise as CEO of Hostess as the company approached bankruptcy. Rayburn wasn't CEO of Hostess until after the company filed for bankruptcy. The post also incorrectly stated that he was paid a salary of up to $2,550,000 per year. His salary when he joined the company was $100,000 per month, according to a company spokesman."

That was not updated on the site I read it on. Oops!

[scottd]

Think Progress is reporting they're asking the bankruptcy judge to allow $1.75 million in executive bonuses in the same request to shutdown.

Hostess To Pay $1.75 Million In Executive Bonuses After Blaming Unions For Bankruptcy | ThinkProgress

[aniela]

Originally Posted by scottd

That was not updated on the site I read it on. Oops!

No worries.

Originally Posted by scottd

Think Progress is reporting they're asking the bankruptcy judge to allow $1.75 million in executive bonuses in the same request to shutdown.

Hostess To Pay $1.75 Million In Executive Bonuses After Blaming Unions For Bankruptcy | ThinkProgress

Shouldn't bonuses only be given when a company did well?

[scottd]

Originally Posted by aniela

Shouldn't bonuses only be given when a company is did well?

That's certainly what I would think but I guess their wallets think otherwise.