Circuit City seeks incentives for executives, others on wind-down team

Posted to: Business Virginia
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The Associated Press
© February 25, 2009

RICHMOND

Circuit City is asking a bankruptcy judge for permission to pay executives and other workers extra to stay with the company as it winds down.

The company said $4.63 million in bonuses is needed to dissuade 154 employees from leaving before what was the nation's second-largest electronics retailer closes for good.

Richmond-based Circuit City said if those employees meet all the targets set for them, that will boost the company's value about $250 million.

A hearing on the request is scheduled for this afternoon in Richmond.

Last month Circuit City announced it would liquidate its 567 U.S. stores, cutting more than 34,000 jobs. Going-out-of-business sales should last through March, after which the stores will be closed. A small staff will continue working at the corporate office through the process.

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evanj

Submitted by keithb64840 on Thu, 02/26/2009 at 12:43 pm.

Your own "silly personal attack" was fun to you?

You didn't think it out?

does anyone have.....

Submitted by iqdou on Thu, 02/26/2009 at 7:54 am.

any ETHICS or MORALS anymore?

Ummm

Submitted by EvanJ on Thu, 02/26/2009 at 7:34 am.

These are the same executives who couldn't meet targets such as running a company successfully?

Umm...did you actually read the context of that quote or just thought the silly personal attack was more fun?

"if those employees meet all the targets set for them"?

Submitted by keithb64840 on Wed, 02/25/2009 at 11:46 pm.

"if those employees meet all the targets set for them"?

These are the same executives who couldn't meet targets such as running a company successfully?

Uh, no

Submitted by EvanJ on Wed, 02/25/2009 at 1:59 pm.

Sorry, this is a free country and not a prison work farm.

This is typical

Submitted by Robert A on Wed, 02/25/2009 at 1:32 pm.

It's this attitude that causes companies problems to start with. If they agreed to stay, they should be FORCED to stay. No bonus, no incentive. The incentive is YOU agreed to do this, now do what you said you would do. If you find another job, I don't think anybody would blame you, otherwise...

Somebody will come in and do the work.

Uh...because

Submitted by EvanJ on Wed, 02/25/2009 at 9:11 am.

Uh...because if they don't, people will just leave now for a new job, and there will be no one left to finish the work.

No Bonuses

Submitted by mygorilla422 on Wed, 02/25/2009 at 9:06 am.

There should not be any bonuses awarded in the company. What is being proposed will average $30,065.00 for each of the 154 employees. This should not be allowed for a company that has files bankruptcy and is going out of business. They have other debts that they owe.

Circuit City incentives

Submitted by waynecatleg on Wed, 02/25/2009 at 9:04 am.

In today's distressed economy why would we want to reward those very people that probably were instrumental in the decline of Circuit City. These executives were probably rewarded very well before the current situation developed, and that should never have happened.
If any funds are to be granted they should go to the employees still working on the showroom floors and in the warehouses, these will be the people impacted the hardest when the doors do close. Obviously, not all of the executives were at fault, but unless they are going to the floors and the warehouses to aid in the closeout of this company, they are guilty by association with a management team that did not do their jobs.

Incentives?

Submitted by sd1955 on Wed, 02/25/2009 at 7:32 am.

Why are they asking for BONUS incentives for people to stay till they close? There are many people out of work that may be able to do the simple jobs required to close the store. Execs are getting paid already. Isn't that bordering on something else? "You must pay me or else" ?