A bankruptcy judge has granted struggling retailer Toys R Us permission to pay millions of dollars in bonuses to executives after the company argued it was necessary to motivate its top brass during the critical holiday shopping season.
Judge Keith Phillips ruled the company can dole out $14 million in incentives to its top 17 executives. A caveat: fiscal year earnings must first reach $550 million. Executives could receive even more if earnings reach $641 million, but the company’s lawyer Joshua Sussberg said that target would be “incredibly hard to achieve,” reports Reuters.
In a filing, Toys R Us argued, “it is the [company’s] employees – and more particularly the senior management team – that must execute at this critical juncture and provide the foundation for a successful turnaround,” reports CNN Money.
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