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Orchard Supply Hardware has asked a judge to approve up to $3.125 million in bonus payments to keep top executives in their jobs while the company is being sold off to the highest bidder, according to the Silicon Valley Business Journal.
In a motion filed last week, Orchard Supply asked a judge to pay four top executives a percentage of a bonus pool, the size of which depends on the company’s final sale price. The low end would be $2.16 million should the company sell for at least $200 million. Executives would get a pro-rated higher bonus—up to $3.125 million—should the company sell for more than $200 million.
Per the motion, the bonuses would be divided as follows:
- CEO Mark Baker would receive 40 percent of the bonus pot (between $860,000 and $1.25 million)
- CFO Chris D. Newman would receive 22.95 percent
- EVP of Merchandising Steven Majurin would receive 22.95 percent
- General Counsel Michael Fox would take home 14.1 percent
Orchard is also seeking to distribute bonuses totaling up to $315,000 among non-executive key employees and another $200,000 for non-officer employees.
Orchard on June 17 announced it would seek Chapter 11 bankruptcy protection while it sought to sell the company. Lowe’s has made an opening $205 million bid to acquire most of Orchard’s assets, including at least 60 of its 91 stores.
