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.

By Kim Peterson Dec 4, 2012 3:50PM
Gregory 'Greg' Rayburn, CEO of Hostess Brands Inc., during a Bloomberg Television interview in New York on Nov. 16, 2012 (Scott Eells/Bloomberg via Getty Images)The CEO of Hostess Brands is getting widely criticized for taking his full salary while cutting everyone else's pay by 8%.

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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853Comments
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...and the mopes that blamed the union for Hostess shutting down are very happy and proud. I just don't get what these folks are thinking...
Dec 5, 2012 10:32AM
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You're right, their killing this country. We should bring back the guillotine and set a few examples.

Dec 5, 2012 10:32AM
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Corporate raiding and stale ideas from out of touch executive is what killed Hostess not the unions, 
Dec 5, 2012 10:31AM
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Folks, this is bad but it's NOTHING compared to the abject greed and hubris diplayed by the Wall Street Bankers and Investment CEO's who took BILLIONS in salaries, bonuses and commissions KNOWING that they and their firms were driving the World monetary system into collapse. They were deemed 'too big to fail' and they were bailed out--first by George Bush and susequently by Barack Obama--after agreeing to sit down at the table and hammer-out resolutions that would keep this from happening again. So far, they have mostly given the Obama admin the finger, refused to bargain or take pay cuts and have gone back to the same old stuff (have you watched Investment and Auto Finanacin commercials on TV lately?) that got us here in the first place.

 

And who is supposed to qualify the greedy, self-serving behaviour? The US Senate? Hahahahahahahaha......

Dec 5, 2012 10:28AM
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What a greedy d-bag.He even looks like a d*ck.I pay $50 just beat the sh*t out of him.It's a**holes like him that the reason the economy is in the toilet. Time for us to take back OUR America,flush the turds like this down to the sewer where they belong.  F- em all!!!! 
Dec 5, 2012 10:27AM
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well. he needs his cognac..every month,yu see.

Dec 5, 2012 10:25AM
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Union killed the company and he is managing the liquidation more or less as a contractor. The Union thugs drove this company into insolvency not the management. They told the union what would happen and they were not lying. Too bad Soo sad for the lazy union labor scum that killed hostess.
Dec 5, 2012 10:24AM
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This exec pay is why we need more Unions in this country.  Im blown away that the judge is letting him keep his pay.  He was being paid to do a job and he failed to do it why should he get a bonus or any other pay?  He was even given a bonus less than 3 months ago then took the company into bankruptcy.  Thats FRAUD!  The judge should tell him if you do not stay on board to finish this job we will charge you with defrauding the company with that bonus you gave yourself and you will be in jail.  Lets see what he says about his paycheck after that.
Dec 5, 2012 10:23AM
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This is the problem with this country ceos top people in companys take all the money for nothing while workers make the money odd sounds just like (walmart) ?  What a DICK
Dec 5, 2012 10:21AM
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Obama has the USA in 16 trillion dollars of DEBT and he is flying off to Hawaii for a 4 million dollar vacation on our dime and you are worried about some Hostess CEO!
Dec 5, 2012 10:11AM
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And Fox news blames the union for everything.

I would not help them "wind down operations" I'd tell them to take their cupcakes and shove them.

Dec 5, 2012 10:05AM
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correct! the CEO thing is out of hand. The CEO's and shareholders are doing more damage than good to companies. Draining profits by giving themselves raises and cutting cost by laying people off and raising health benefits so they pay less. I'm sure you have seen it. Companies laying people off and making others pick the slack. If the fiscal cliff hits, we will all be in trouble with these CEO's.

 

This does not help the economy. Too much is put on the stock market and how a company does day-to-day. I think this is another issue of how our investments are slowly being bleed by investment companies.

 

I just  love seing how a company stock goes up 10% one day and then down 5% the next. Everybody is in a hurry to make money and willing to screw with the system to do it.

Dec 5, 2012 10:04AM
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don't knock the ceo of twinkies you know he has other expenses, like fine wine,perfect food/,
(he hates twinkies ),  and women  don't COME cheep either.

Dec 5, 2012 10:04AM
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Oh, but I thought their demise was solely caused by the unions. It smelled like crap when I first heard it, and now this..... Thanks for confirming my suspicions. I think everyone is forgetting that this man is imperial. (Big Loser).
Dec 5, 2012 10:04AM
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Good old legalized American corporate racketeering at it's best......... it's just the start folks! These parasites smell blood and are ready to feed.
Dec 5, 2012 10:01AM
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All this union bashing is just plain stupid.  If it weren't for unions we'd be working in facotries like the one that caught fire killing 112+ people in Bangladesh corporations don't care about people they care about their bootom line paying 100 people $10/day in China is cheaper than buying a $200 million piece of machinery here that can do the same thing.  If people made more and prices went up all done proportionally we would still be in the same shape.., but us at the midlle and bottom would feel we have more and at least the rich would have less influence because they could buy less.  Also without pay regulation the minimum wage isn't doing it's ob because of inflation the minimum wage should be $10.68 to set it even with the rise of inflation so people are making the same as they were when the minimum wage was instituted.  Check your facts before you spew garbage people.  Modern day workers owe much to the unions in the early and mid 20th century.  But was also before unions started to protect all workers even the ones that have no business in the job they have.
Dec 5, 2012 9:59AM
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from the comments here I can see that Obamas push to divide this country is well underway. Where was the outrage when Obama had someone paid $$ to oversee the BP oil mess? or the pay out of TARP or the person who oversaw the money for 9/11? they all got millions. Why no outrage? You all point the finger at the CEO - well what about the Board of trustees who hire them and give them these pay packages? Many of them sit on multipule boards, they make millions ( Michelle Obama was a multipul at one time) If you don't work for them and you don't own apart in the company ( don't be embarressed like the Prez was, check and see where your money lands in those mutual funds...) - what is your complaint? If you do own a part, start writing to them , call them and ask what are they doing with your money. I wonder why, we tell our children that they can grow up and become anything they want, the world is your oyster - yet today we have to tell them, don't make alot of money, that's bad. Well unless your some kind of entertainer then you should be able to make alot of money and hide it in production companies....

Dec 5, 2012 9:58AM
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Money grubbing twinkie, dont want to give up some of your pay but will let minimum wagers take cuts and losses in there paychecks. ou should be ashamed of your self. Can you sleep at night.

 put your self on thesame wage the employee gets and see how you get by.

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