The IAM welcomed the decision by the U.S. Bankruptcy Court in New York to deny a $5.3 million bonus plan for eight senior executives at Hawker Beechcraft.
In a ruling that concurred with the IAM objection to the plan, U.S. Bankruptcy Judge Stuart Bernstein said Hawker failed to prove that the plan was an incentive plan — which is allowed under bankruptcy law — and not simply an executive retention plan — which is not permitted.
“This is an important win for stakeholders at Hawker Beechcraft, including employees and the Wichita community, all of whom want to see Hawker succeed,” said IAM Aerospace Coordinator Ron Eldridge. “We remain opposed, however, to any recovery or restructuring that favors executives at the expense of the men and women who built this company.”
The full text of the ruling can be viewed here.