Union, Feds Seek to Block Hawker Beechcraft Bonuses

Stephen Pope

Tuesday, July 31, 2012 at 07:58 PM ET

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Hawker 800XP [Credit: FLYING Archive]

Key Takeaways:

A federal judge is deliberating whether to approve $5.3 million in bonuses for eight senior Hawker Beechcraft executives.
The proposed bonuses are opposed by the company's union and federal regulators, who criticize them as a "money grab" or "disguised retention plan" during the company's bankruptcy.
Hawker Beechcraft is currently in bankruptcy, with its commercial business approved for a $1.79 billion sale to Superior Aviation Beijing.

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A federal judge is weighing whether to allow up to $5.3 million in bonuses for eight senior Hawker Beechcraft executives after the company’s union and federal regulators criticized the payouts as a money grab.

The court has approved an exclusivity agreement with Superior Aviation Beijing allowing Hawker Beechcraft to sell the company to the Chinese company for $1.79 billion. The sale would not include Hawker Beech’s defense business. The judge last week approved $1.9 million in bonuses for 31 managers.