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(Detroit Free Press)   After declaring bankruptcy and firing thousands of employees, Kmart Corp is STILL handing out million-dollar bonuses   ( divider line
    More: Asinine  
•       •       •

61 clicks; posted to Main » on 09 Apr 2003 at 4:06 PM (14 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»

122 Comments     (+0 »)

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2003-04-09 01:21:33 PM  
Is it simply that greed is at work here in companies like Enron, Worldcom, or Kfart? Or is there another explanation? Faulty math skills? Basic stupidity? Planets realigning?
2003-04-09 01:39:53 PM  
Welcome to Corporate America.

Now go buy something you don't really need.
2003-04-09 01:49:35 PM  
"As Kmart continues to pursue our goal of emerging from Chapter 11, one of our top priorities has been the retention of key talent"

That's the bullshiat reason. Think of being an executive. You want a retirement package/bonus you're not going to get cause you're going into bankruptcy. So to cover that up, you come up with a perfectly valid reason that's really, complete bullshiat. Sure they have a point about key talent, but they could care less; they're going into bankruptcy and they want their payout. But of course you can't prove that, they know it, so they'll get their bonuses and nobody can say shiat. It worked for Bush and Iraq and it'll work for K-Mart.
2003-04-09 01:58:58 PM  
The bonuses to employees makes all the sense in the world, and is a good thing.

The bonuses to executives makes sense too. These are not the guys who drove the company into bankrupcy. These people were brought in to take a horrible situation and turn it into a less horrible situation. Thats their job. They should be paid according to that. No reason not to give them bonuses.

Don't get fooled by the numbers and sucked into liberal PR.... a few million dollars is meaningless in terms of KMart.... if they all gave back the $30 (or whatever) million... it would do nothing to ease their BILLIONS of dollars in debt.

Start your own friggin multi-billion company if you don't like it.
2003-04-09 02:08:48 PM  
Downstairs, 30 million dollars would go a long way to rehire some of the people they let go.

But hey, I'm sure the executives will spend those million dollar bonuses at K-Mart and elsewhere to help spur the economy.

Oh, and the bonuses did not reach the "employees" that could probably have used it the most.
2003-04-09 03:02:46 PM  
Bonuses for executives who improve a company are merited. Multi-million dollar bonuses for these executives when the company still has a long way to go to get out of the can, and when plenty of laid-off employees can be rehired, are ridiculous.

A company can not honestly tell it's employees that it is laying them off for the company's financial good, then throw millions at an executive when it could easily hire those needed employees back with that same money!
2003-04-09 04:01:45 PM  
If you're an executive for a company, you do not deserve a multi-million dollar "bonus" just for taking the company from Horrible to Slightly-Less Horrible.
2003-04-09 04:13:54 PM  
Bankruptcy is such a crock. It protects businesses that should just go under and screws so many individuals and vendors. Then there's personal bankruptcy which protects asshats that get in over their greedy little material heads while hardworking people who pay their bills do without.
2003-04-09 04:15:36 PM  
My executive bonus is tied to reaching corporate goals. If the people that work for me do really well, I double my salary each year. My ability to Fark all day and get people to perform well is a testement to my superior leadership skills. Well not really, good to have talented people to delegate to!
2003-04-09 04:16:12 PM  
Alton: Perhaps some of the people who were let go were not neccessary, as the company was getting less business, and therefore required less workers. Let's just rehire a bunch of people to stand around.
2003-04-09 04:17:11 PM  
Downstairs, what's "liberal" about criticizing a corporation for making stupid business decisions? If anything, ensuring the vitality of our free market system through the enforcement of sound business practices ought to be something lauded by conservatives as well as anyone else.
2003-04-09 04:17:41 PM  
It's as easy as this;

"... Bankruptcy is a legal proceeding in which you put your money in your pants pocket and give your coat to your creditors"

2003-04-09 04:17:47 PM  
They are closing the store that is a couple of miles south of me. I gotta remember to stop by and pick up a shopping cart as a souvenir.
2003-04-09 04:18:23 PM  
Percentile of income earners vs.
Total reaming your asses (percentage):

Top 1% = 97.42%
Top 5% = 99.07%
Top 10%= 99.43%
Top 25%= 99.81%
Top 50%= 99.99
2003-04-09 04:18:23 PM  
So executives that are already probably making millions per year just in salary, now get millions in bonuses. Stupid.

Did you see those loss figures? They lost 3.2 billion last year. Damn.
2003-04-09 04:18:53 PM  
hey its the american way. if you dont like it, go back to russia you commie liberal
2003-04-09 04:19:12 PM  
Shop smart. Shop S-Mart.

2003-04-09 04:20:06 PM  
"Chairman Jim Adamson will walk away from Kmart with a $3.6-million bonus when the Troy discounter comes out of bankruptcy by April 30. Adamson has been Kmart's chairman since shortly before the retailer declared bankruptcy Jan. 22, 2002, and was its chief executive for 10 months."

Hmmm.... so this guy Jim has only been since just before the company went broke? Sounds like maybe they should have just gotten rid of him instead of rewarding his driving the company into the ground months after accepting the position with a multi-million dollar bonus.

They should give the money to me instead. I need it. But that whole "I am broke and have a web site, please send me money" thing has gotten so old.

(*ahem* I don't have a web site, but really need the money. Just a thought...)
2003-04-09 04:20:56 PM  
$30 million
$30,000 average assistant manager position at K-mart. (guess)

That's 1,000 jobs they could have saved instead of giving bonuses for losing money.
2003-04-09 04:21:17 PM  
This is probly the bail out bonus.. meaning that KrapMart will go out of business soon but the execs "got theirs". KMart sucks anyway.. close 'em all!
2003-04-09 04:21:55 PM  
(Running with Nightsweat's theme)

Some investors just might come around with their BANG STICK!!

Hail to the Greed baby!
2003-04-09 04:21:58 PM  
Why can't liberals stand it when rich thieving criminals make lots of money. They should be glad they live in a country where the people CAN steal and rob legally. If they don't like it go live in elbonia.

/flame on
2003-04-09 04:22:18 PM  
Demon K-Mart Executive: "I'll get this bonus and steal your soul! "
Ash: "Come get some."

[image from too old to be available]
Shop Smart. Shop S-Mart.

2003-04-09 04:22:54 PM  
Sunbelly, i think you need to take a literacy course. The company was on the skids, and just before it went bankrupt, they hired him. He had nothing to do with the bankrupcy, it was inevitable. In the 10 months that hes been there, the company is coming out of bankrupcy.
2003-04-09 04:23:45 PM  
More like obvious.

This is what executives do.

I think it's a common business model now.

1. Start a company.
2. Generate cash flow.
3. Go bankrupt.
4. Take cash flow with you.
5. ?
6. Profit!
2003-04-09 04:25:19 PM  
Wait, here is a good one I just found:

One day, the Pastor sees Matthew walking slowly out of Church. Matthew is dejected, disheveled and looks terrible.

"Matthew," asked the Pastor, "what's the matter?"

"Well, Pastor, my business is shot, I'm losing my house and my wife says she is going to leave me and take the kids if I don't straighten
things out. I just don't know what to do."

"Matthew, find the answer in the Bible," the Pastor replied. And Matthew left.

Four months later, the Pastor sees Matthew coming out of Church, only this time, he's wearing an Armani suit, a nice cap and lighting a
big old cigar.

"Matthew, you look great! Did you follow my advice?"

"I did. I went home that day and decided to open the Bible and to follow the advice I saw. So I opened the Bible and the first phrase I
saw said:

Matthew Chapter 11.
2003-04-09 04:25:57 PM  
I remember that Lee Iacocca took a $1/yr salary and no bonus until Chrysler emerged from Chap. 11.

Guess that's the "old school."
2003-04-09 04:26:14 PM  
Khaddy: Oh, I'm sorry, I guess I forgot to mention the part where that was sarcasm and skipped straight to the part where they should have given that money to me.

However, you forgot to mention the part that you don't know me or anything about me and skipped straight to the part where you tell me to get educated. Thanks a bunch.
2003-04-09 04:28:19 PM  
Xoopx: What's the American way? Increasing your bonuses while your company loses billions?

It's not quite as bad as Russia though. There EVERY institution has a criminal element.
2003-04-09 04:29:08 PM  
Thats some pretty sketchy sarcasm there. I think the way sarcasm works is to give people some kind of hint that it is sarcasm, so no one is left scratching their heads.

As for the insult, relax. How long have you been on the internet? Still havent developed a thick skin for insults? :)
2003-04-09 04:34:16 PM  
Execs that take a salary cut always have $100 million in options, they're no saints. For instance, the CEO fo Xilinx 1/2 salary, $125 million in options
2003-04-09 04:35:02 PM  
At one time I was a registered Republican. I kind of left after not being able to stand their stance on social freedoms. Fiscally I am pretty conservative though. But shiat man, some conservatives need a goddamn brain transplant. Criticizing leaders of a failing company in chapter 11 for getting bonuses isn't' liberal, its farking common sense. What happens if they fail to leave chapter 11? Their venders will have had an extra 30 million dollars stolen from them because of those bonuses. Oh, but criticizing a corporation is a liberal thing, so that makes anyone criticizing a liberal! I like dogs, and saying that a rabid dog that bites people should be put to sleep isn't an anti-dog statement.
2003-04-09 04:36:30 PM  
how come the execs that drove kfart into bankrupcy dont have to give back the millions they got for screwing up?

they certainly didnt earn it.
2003-04-09 04:36:54 PM  
Khaddy: Which is why I said I forgot to add the sarcasm part ( I literally forgot to add the line I was going to, thereby making it completely non-sarcastic) and skipped to the main part, being "give me money".

And as for the insult, it's been a really, really long week already, and today had someone I work with tell me, pretty bluntly, that I was uneducated. Sorry for biting your head off.
2003-04-09 04:39:05 PM  
2003-04-09 04:39:10 PM  
If they close stores, where will all the cashiers go to hang around outside and smoke?
2003-04-09 04:40:10 PM  
Sunbelly: No problem. Sorry about mentioning education when i should have just said "please read the article", (back before you clarified what you said was sarcasm).

Hey look at that. A peaceful, happy ending solution to our problem. And we didnt even need to kill anyone in the process ;)
2003-04-09 04:41:24 PM  
I used to work as a manager at K-Mart, and I can tell you that Rainman was right... K-mart does suck! That was pure hell to work there, talk about a poorly run organization!!
2003-04-09 04:44:21 PM  
Khaddy: "And we didnt even need to kill anyone in the process ;)"

Yeah, but the night is still young. And I'm still pretty pissed at this guy I work with, so could I maybe kill someone, just a little?

Goin' home! Bye all!
2003-04-09 04:46:04 PM  
[image from too old to be available]

2003-04-09 04:46:57 PM  
Does anyone know how to make a website where the text flows properly anymore?

2003-04-09 04:49:50 PM  
I understand why wages are not stopped when a company is in bankruptcy, but anyone that gets a bonus should have to get in line with the rest of the creditors.
2003-04-09 04:52:12 PM  

Nobody said "Kmart Sucks"

Did they????????? I thought that would have been used a zillion times already.
2003-04-09 04:52:29 PM  
Flamewar anyone?

Maybe it could move up here from the tax thread below.
2003-04-09 04:52:31 PM  
I'm not going to miss K-Mart. It treats its employees horribly, and they're the people who keep the company in business, not those spoiled executives. The store can't go under quickly enough in my opinion.

2003-04-09 04:53:05 PM  
It all depends on the situation. I dont know the exact details of this case, but perhaps the company feels that the bonus is a worthwhile investment - the guy is turning things around, so 3 million invested in him might mean a bigger return in the end.
2003-04-09 04:53:43 PM  
i need to get me one of them jobs where you get to fire loads of people, shut down stores and collect a huge bonus.

anyone know someone who is hiring for one of those positions? i have no business experience. no business degree. and, i recently lost my shoe, so i only have one of those. and, i also, like to use, commas.
2003-04-09 04:54:19 PM  
This is hardly news. It sucks for all those who were let go, but it's not anything new.

What can you do, our system allows this type of behavior by bailing corporations out.

Bring back laissez faire economics! That's what capitalism is all about baby!
2003-04-09 04:56:43 PM  
Ol' Jim Adamson who calls himself a Turnaround Specialist, did his magic with Advantica (Dennys) by selling off all their other restaurant chains, writing a book, and leaving town with millions. During his tenure and to this day, the company just limps along. Maybe Dennys and K-Mart do deserve to bite the dust but does Jim deserve the $$?
2003-04-09 04:57:55 PM  
Sunbelly, i think you need to take a literacy course. The company was on the skids, and just before it went bankrupt, they hired him. He had nothing to do with the bankrupcy, it was inevitable. In the 10 months that hes been there, the company is coming out of bankrupcy.

That sounds surprisingly similar to the situation Bush was put in when Clinton left office and the stock market took a big dump.

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