Even though Sears Canada is closing, execs will receive bonuses
Back in July it was made public that $7.6 million in retention bonuses were going to be paid out to 43 high-level Sears Canada executives. The bonuses were only meant to be paid out in full if they managed to keep Sears afloat. However, even though liquidation has begun and a total shut down is on the horizon, it has come to light that the bonuses will still be paid out.
Sears Canada got court approval earlier this week to continue handing out the bonuses. Instead of the original $7.6 million (3.7 of which has already been doled out, some to executives who have since quit), $6.5 million will be paid out. In addition to paying $1.1 million less than before, less than the original 43 executives will be receiving the bonuses. However, the 20 original staff members still getting bonuses will receive as much as, or more than, they were promised back in July.
Former employees are less than thrilled about the news that even though Sears Canada has begun complete liquidation, the executives that were unable to save the Canadian company are still going to be paid out a hefty sum.
"Can I use the F-word?" said Mina Iannino, whose severance was cut off in June after loosing her merchandiser job at Sears back in March. "I'm really upset. I'm disgusted with this company.”
Jennifer Holder, who like Iannio, was laid off from her Sears sales job in Toronto, says the revised bonus plan makes no sense.
"It baffles the mind," said Holder, who worked for Sears for 28 years. "I can't believe they're worried about securing bonuses for execs when the employees are looking at going through the Christmas season with no real job. Why should they get a bonus if we're not getting anything at all?"
This is s a particularly hard slap in the face to all those who have lost their jobs with no severance. A hardship fund was set to be put in place for those who were laid of and in need of financial help, however not all the money promised to the fund may be delivered. The hardship fund was supposed to be $500,000, a drop in the bucket compared to the executive bonuses of $7.6 million, but might end up being $200,000 short.