You are hereWall St. Journal: Borders Seeks To Hand Out $8.3 Million In Bonuses

Wall St. Journal: Borders Seeks To Hand Out $8.3 Million In Bonuses


March 26, 2011- Book retailer Borders Group Inc., which is shuttering hundreds of stores in a bid to stay alive, is seeking bankruptcy court approval to hand out as much as $8.3 million in executive bonuses, including nearly $1.7 million to President Mike Edwards.

Papers filed with the U.S. Bankruptcy Court in Manhattan outline a proposed bonus program that is keyed to the company either reorganizing under Chapter 11 or selling itself as a going concern. The bonus proposal is due for review April 14.

Mr. Edwards is also president and chief executive of Borders Inc., the principal unit of Borders Group. Bennett LeBow, chief executive of Borders Group Inc., isn't included in the bonus plan, which was outlined Thursday.

For Borders' five highest-level executives, the bonuses would mean extra pay of between 90% and 150% of their base salaries, depending on how quickly the company exits bankruptcy or is sold as a going concern.

Saddled with leases on big stores, Borders has said it will try to get out of bankruptcy by August or September. The Ann Arbor, Mich., company said the bonus program should help ensure that happens because rewards are linked to an "aggressive" time frame for exiting Chapter 11. The bonuses won't be paid if Borders liquidates.

Seventeen top executives are covered by the largest program, which could add as much as $7.1 million to the pay packets of leaders who stick with the company in bankruptcy.

Court papers say 70% of the group have been with the company less than 18 months, and many joined Borders less than a year ago.

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