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https://www.businessinsider.com/sears-exec-bonuses-reactions-2018-12

Sears

has got people fuming over the fact that top executives stand to pick up major bonuses while laid-off Kmart and Sears store employees have seen their severance pay nixed.

Last week, a bankruptcy court gave the company the go-ahead to set aside $25.3 million in bonuses for top executives, according the Chicago Tribune. The retailer argued that it required the money in order to get these execs to stick around.

The Chicago Tribune reported that 19 executives will receive bonuses from a pool of $8.4 million if they help the company hit its goals for next six months, while 315 senior employees could draw from a pool of $16.9 million.

Meanwhile, laid-off Sears store employees have reported that they stopped receiving severance checks after the company filed for bankruptcy.

Sears and Kmart store employees posted a letter to the company on Rise Up Retail's website, demanding that the retailer "guarantee severance pay and create a hardship fund for thousands of laid off Sears and Kmart employees to help our families get back on our feet."

"It has been devastating," laid-off Kmart employee Sheila Brewer told Vox. Brewer said she received severance for two weeks before the money stopped coming. "In addition to losing my job and having anxiety about who is going to hire me, since I haven't had a job interview in almost 20 years, I am counting on this money. I'm already behind on my rent, and I am the sole provider for my family."

A Sears Holdings spokesperson declined Business Insider's request for comment.

Sen. Bernie Sanders took to Twitter to denounce Sears, calling the move indicative of a "rigged economy."

Run the company into the ground? Get rewarded Millions!

 

[Musky_Cheese]

I can't believe Sears had 25 million total...

 

[Grinchy]

That definitely doesn't sound good. I'm not someone who has trouble understanding why the top positions pay more than the bottom positions, but in a case of the company going out of business, it really is hard to reward the people in charge of the decisions that made the business fail.

 

[NickFire]

I don't care what anyone says. Paying 25 million to keep the executives around is stupid. If they were so vital the company wouldn't be bankrupt in my book.

 

[lil puff]

I'm seriously shocked that Sears made it past the year 2000.

 

[cr0w]

I worked at Sears in '98-'99 (commissioned electronics sales...it was the most ball-achingly dull, soul crushing job. My only worse experience was working for Kirby Vacuums for three days), and they seemed on their last legs back then. If anyone deserves any sort of reward for sticking with the company, it's the store-level employees. What a shame.

 

[hybrid_birth]

Huh, I didn't know the Sear's execs were signing up to be in a Scrooge play. They got the part.

 

[cryptoadam]

I think the employees should get some severance too, but the executives aren't getting paid 25 million to run the company into the ground. Most people probably don't realize that the head of HR is an executive, the head of pay roll is an executive, etc... Whose going to keep the pay checks going out? Its not just that 1 CEO who decided to tank the company there are plenty of executives who had nothing to do with the company tanking.

You need these people to keep the ship going until its finally liquidated and bankcrupt. The only way to keep these people around is to offer then bonus packages.

Should some of these funds also be set aside for the regular workers sure I can agree to that as well. Is the sum too high? Ok maybe it comes out to 75K per person, though I doubt its evenly divided. For most thats at most 1 year severance and for many probably not even 1 year.

Anyways I have never heard of severance packages for day to day employees. Ususally the severance is 2 weeks pay. I was part of a department that closed down and senior managment were offered buy out packages which was basically a few weeks pay, and the regular employees weren't given anything outside of 2 weeks severance.

 

[Sub_Level]

Bankruptcies for chains like this don't happen overnight. The process of liquidation takes many months and shit still has to be ran from the top otherwise it becomes a mini mad max. Its not just one big auction for everything in the store and then boom close the shutters. They have to slash prices bit by bit to get inventory out. Then as inventory clears they can start selling off store fixtures.

Its a massive pain in the ass to close a big retail store, much less a nationwide chain of them. Not saying it justifies Sears' decision, just pointing it out.

 

[ph33rknot]

it's been bad my girl used to work for them she said it been bed for a long time now

 

[Super Mario]

I think the employees should get some severance too, but the executives aren't getting paid 25 million to run the company into the ground. Most people probably don't realize that the head of HR is an executive, the head of pay roll is an executive, etc... Whose going to keep the pay checks going out? Its not just that 1 CEO who decided to tank the company there are plenty of executives who had nothing to do with the company tanking.

You need these people to keep the ship going until its finally liquidated and bankcrupt. The only way to keep these people around is to offer then bonus packages.

Should some of these funds also be set aside for the regular workers sure I can agree to that as well. Is the sum too high? Ok maybe it comes out to 75K per person, though I doubt its evenly divided. For most thats at most 1 year severance and for many probably not even 1 year.

Anyways I have never heard of severance packages for day to day employees. Ususally the severance is 2 weeks pay. I was part of a department that closed down and senior managment were offered buy out packages which was basically a few weeks pay, and the regular employees weren't given anything outside of 2 weeks severance.

Invalid, I saw a Bernie meme. I am a victim!

No executive would stay aboard a huge corporation without compensation. Go take your feelings and your righteousness, and start your own corporation for a lower salary.