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 deciding on a controversial request for up to $5.3 million in bonuses for eight senior Hawker Beechcraft executives as the company emerges from bankruptcy.
Federal regulators and the company's union criticize the proposed bonuses as an excessive "money grab" or "disguised retention plan," despite earlier approval of $1.9 million for other managers.
Hawker Beechcraft defends the bonuses, arguing they are necessary to retain "talented and capable" executives who are working to complete the company's bankruptcy exit, including a $1.79 billion sale of its non-defense business to a Chinese firm.

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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.