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Bankruptcy Judge Rejects Hawker Beechcraft Bonuses

Hawker 4000
Gemini Sparkle

Key Takeaways:

  • A bankruptcy judge rejected a proposal to grant $5.3 million in bonuses to eight top Hawker Beechcraft executives.
  • The judge ruled the plan was a retention incentive and did not meet legal standards requiring "challenging goals" for payouts during bankruptcy proceedings.
  • The bonus plan was formally opposed by Hawker Beechcraft's union and the U.S. Justice Department's bankruptcy watchdog agency.
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A bankruptcy judge has rejected a proposal to give eight top Hawker Beechcraft executives up to $5.3 million in bonuses, ruling the plan would reward them merely for staying at their jobs.

The judge in the case said the plan amounted to retention incentives, and did not meet legal standards that require “challenging goals” before such payouts are allowed in bankruptcy proceedings.

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