BONUS MONEY totaling as much as $20 million is now expected to be paid out to a pool of at least 10 RG Steel executives if the now-bankrupt steelmaker's assets are successfully sold at auction in the immediate future.
Details of the bonuses are currently sealed. However, names of those who stand to benefit from this motion are included in the court filings.
Several industry sources have described the agreement as extremely complex.
Those noted in the court document who may be eligible to receive these bonuses include top executives: John Goodwin, Rich Caruso, Dave Pryzbylski, Mark Whalen, Tom Cera, Jeff Gennuso, Howie Japlan, George Lukes, Glen Mikaloff and Jerry Nelson.
Their various titles include serving RG Steel as president and chief executive officer, vice president and chief financial officer, vice president and chief administrative officer, vice president and chief operating officer, corporate counsel, vice president of general counsel, vice president of quality assurance and business planning, and vice president and chief commercial officer.
The United States Trustee assigned to the case objected to the bonus pool being established and also objected to the seal on the potential compensation levels of those executives.
Federal Bankruptcy Court Judge Kevin J. Carey made his ruling on the contested motion establishing the bonus pool of funds during Wednesday's Omnibus hearing in Wilmington, Del.
Court documents filed recently note many of the executives who now stand to benefit from a successful sale left home and family to take up management of the company about 18 months ago, and as they do not expect to be employed with the steel firm much longer the prospect of the bonus money will help compensate for those business related stressors and keep them "laser focused" on the necessary details of the bankruptcy process and need for the sale of assets.
The bonuses are not guaranteed, and will be heavily influenced by money available after several layers of lenders are paid.
Those lenders include Wells Fargo, General Electric, UBS Securities, Bank of America, Merrill Lynch, Cerebus Business Finance, and the Renco Group, which is owned by New York based billionaire Ira L. Rennert and his family.
Loccisano may be reached at kimfromthetl@gmail.com
