Former Apple sapphire partner GT Advanced Technologies, currently in the midst of Chapter 11 bankruptcy, has asked for approval to hand out millions of dollars in executive bonuses as part of an employee retention plan.
GTAT on Monday filed a motion requesting permission to follow through with its key employee incentive plan for certain insiders (KEIP) and key employee retention plan for non-insiders (KERP), both being performance-driven initiatives designed to motivate top executives.
Under the terms of GT’s October bankruptcy filing, the company must ask for permission from Judge Henry J. Boroff before handing out bonuses, reports The Wall Street Journal. It is expected that the request will be opposed by GT’s debtors, which include Apple.
If all eligible senior management employees achieve their target performance thresholds, GT expects the KEIP program will cost as much as $2.275 million.
The separate KERP program offers non-insider employees retention bonuses from $10,990 to $125,000, assuming all bonuses are earned, the total cost, minus a discretionary pool could amount to $1.4 million.
The firm also plans to carry out a $1.95 million Management Incentive Plan applicable to 173 employees not included in the KEIP and KERP programs.
Read the entire GT Advanced Technologies Motion to Approve Incentive Plan.