Report: Judge signs off on nearly $38M in bonuses for Frontier execs

On Friday, U.S. Bankruptcy Judge Robert Drain signed of on $37.7 million in bonuses for Frontier Communications' executives as the telco works its way through Chapter 11 bankruptcy.

According to a story by Law360 (pay wall applies), Drain approved the bonuses because they appeared to be in line with industry standards, and were not targeted towards company insiders. The employee bonus plan includes paying up to $14.7 million in retention bonuses, up to $21 million in incentive bonuses based on the company's fiscal performance, and a $2 million reserve that would be set aside for newly hired employees or employees not currently covered.

According to Law360, Frontier's bonus program would also pay middle management employees that the company considers vital to its operations between $30,000 and $233,000 each. Frontier's counsel, Stephen Hessler, said the bankruptcy filing and the coronavirus pandemic made the bonuses even more important as Frontier seeks to retain key employees.

During a telephone hearing, Judge Drain approved the proposed bonus plan over an initial objection from the U.S. Trustee's Office after hearing two creditor groups had dropped their objections once Frontier agreed to adjust the payment schedule, according to Law360.

Frontier filed for Chapter 11 bankruptcy protection on April 15 to kick-start a prearranged $10 billion debt-cutting proposal backed by its bondholders. Frontier announced it had entered into a Restructuring Support Agreement (RSA) with bondholders representing more than 75% of its $11 billion outstanding unsecured bonds

https://www.fiercetelecom.com/telecom/report-judge-signs-off-nearly-38m-bonuses-for-frontier-execs?mkt_tok=eyJpIjoiTmpsbVptTmxaR0l6WmpkbCIsInQiOiJPUXZZaVFmS2o0MmlIK2h2V0NSU2YrcUdBUU93Sjl6STZybDB3NExFa2RDOVI5YjFIdHloTmV2WkxKOHRrTFEzYjd2UFZCTUVGbE50SjE5djZuRklOb1NkSWdJMFZCOFwvNFRGdU5COFFNVXlQZlVvNEI1bjFDV21ZRkV2V2lTUEgifQ%3D%3D&mrkid=8465628

Only in America. Where else can you get a bonus for fucking up badly?