Quote below from Politicusa.com
On February 16, Borders Group Inc. (BGP) filed for Chapter 11 protection and announced it would close about 30% of its stores nationwide in the coming weeks (In re Borders Group Inc., 11-10614, U.S. Bankruptcy Court, Southern District of New York). Borders is/was currently the second-largest book chain after Barnes & Noble Inc. (BKS),
Six thousand people – 6,000 – out of work.
As the New York Times reported,
The troubles of Borders are rooted in a series of strategic missteps, executive turnover and a failure to understand the digital revolution — problems in many ways of Borders’ own making.
So it may surprise you to learn that Borders has the same belief as Wall Street with regards to rewarding incompetence. Rather than fix the problem, or punish those responsible, it punished its innocent employees, and the book-hungry public, by closing hundreds of stores. Meanwhile, the President and CEO is asking for $8.3 million in executive bonuses (including nearly $1.7 million for himself).
CEO Mike Edwards currently has a salary of $750,000. The bonus plan would give other top executives bonuses equal to as much as 90% to 150% of their base pay.
Doesn’t seem fair. But then, that’s corporate America. That’s the America Republicans love.
Borders is in debt to the tune of $1 billion, folks. As the Times reports,
In its filing in United States Bankruptcy Court in Manhattan, Borders listed $1.29 billion in debt and $1.27 billion in assets. As of the filing, Borders owed $272 million to its 30 largest unsecured creditors — including $41.1 million to the Penguin Group USA.
Of course, if we didn't allow CEOs to make that kind of money, we wouldn't be able to get good people to run our companies,.... into the ground.
tnb
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