Friday, February 24, 2012

Bonuses given after raises at Solyndra: Worker incentive paid during bankruptcy

WILMINGTON, Del. — Several of the nearly two dozen employees at bankrupt solar panel maker Solyndra LLC who were approved for bonuses Wednesday had months earlier received pay raises as high as 70 percent, a fact the company never disclosed in its request for bonus cash.

The company’s bankruptcy attorneys sought permission for the bonuses in a court hearing, arguing that the extra cash is needed to keep key employees from fleeing only to be replaced by more expensive outside consultants.

With little chance of stable employment and officials moving to liquidate assets, the workers needed to wind down the company have little incentive to stay, the Solyndra attorneys argued.

But an attorney for fired Solyndra workers railed against the plan, saying several of the proposed bonus recipients had received significant salary increases even after the company went bankrupt. Read More