Hostess CEO cuts everyone's pay but his
Gregory Rayburn argues that because he isn't on the Hostess payroll, he should still get his full $125,000 a month.
Gregory Rayburn will still get his $125,000 a month, or $1.5 million a year, the company told The Huffington Post. His logic is that because he isn't on the Hostess payroll, he doesn't have to take part in the company-wide pay cut.
Rayburn looks at himself as temporary, telling The New York Post he's more like outside help and therefore entitled to his full salary. He said he will leave Hostess when he's no longer needed, the Post reports.
Rayburn joined Hostess in February as chief restructuring officer, and one month later was named president and CEO. He's also on the board of directors.
To be fair, Rayburn is taking some measures to rein in his pay. He was eligible to get a bonus of between $375,000 and $1.125 million, but decided to give up the money, The Huffington Post reports. And Rayburn and three other top executives are taking $1 for the rest of the year in pay, but their full salaries will be reinstated in January.
That's small comfort to the rank-and-file employees who watched a number of Hostess executives get sweet pay raises and bonuses as the company barreled into bankruptcy. The company wants 19 top managers to stay with Hostess as it moves into the liquidation phase, and got approval from a bankruptcy judge to award up to $1.75 million in retainment bonuses.
The execs only get those bonuses if they perform specific tasks related to easing the operational wind-down, a company spokesman told The Los Angeles Times. Rayburn won't be getting a bonus.
At least 15,000 Hostess employees are losing their jobs in bankruptcy, but Hostess wants to keep about 3,200 to help wind down operations.
Hostess cracked under nearly $1 billion in debt, and blame for its demise can be spread far and wide. Private-equity firms funding the company couldn't get it off the ground. When consumers lost interest in carbs and sugar, the biggest innovation Hostess could come up with was banana-filling Twinkies. Although union members agreed to steep concessions over the years, it still failed to adjust to new realities. The old CEO, Brian Driscoll, suddenly bailed in March without explanation, Fortune reports.
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This company is failing because of a history of over paying the under achieving executives. Rayburn was hired to save the place and has beautifully proven he isn't capable of doing so. Other than setting his own shorts on fire for the entertainment value, there is nothing he can do that is worth the pay he is receiving. He needs to receive exactly the same pay the 18,000 employees his ineptitude has caused to be unemployed--nothing.
Honestly, for a CEO of a major brand, who's there to handle the bankruptcy proceedings, $1.5 million is a negligible amount of money... Similar CEO's are getting paid 10 times that.
Give him credit for taking a $1 salary for most of the year and passing up a potential $1.5 million bonus...
So, for taking $1 for 6 months and passing up, say $1 million in bonus, he's passed on $1.75 Million.
That's around a 115% paycut.
Props to him for passing up that much cash when he could have taken his talent to another corporation and gotten paid many more millions.
Remember, he's not the CEO that got the company into that mess.
It appears many of the envious forgot what idiotic union actions led to this. To be fair--All of the other unions got it right. One was greedy and stupid costing 18,000 people their job.
This is a clear case of union greed.
Were there business issues---you bet--- many union based.
Well, one consolation concerning this (if it can be that) is that his wealth is about to be heavily taxed by Obama.
Welcome to Socialism, Mr. CEO.
thats called temp work where i live and u dont get full pay of a full time employee
Find out who is on the board of directors and write / call them and tell them to cut this guys pay. After they cut his pay tell this group of directors they need to now step down because they have not done their job. Thirdly, if you own their stock directly or within a Mutual Fund now sell it off.
Do the above with all companies that are paying these idiot CEO"s vast amount of monies and are not creating any new revenue company growth, screwing their employees and are not showing any future for the company.
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