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https://www.morningstar.com/news/Market-watch/TDJNMW_20170302682/bankrupt-avaya-seeks-37-million-for-executive-bonuses.print.html03/02/17 11:09 PM EST
By Lillian Rizzo
Company recently cut pension benefits for some retirees
Avaya Inc. is seeking to pay its chief executive and 10 other top executives up to $3.7 million in bonuses for the second quarter of this year.
While Avaya's "overriding goal remains to complete" its reorganization, its ability to achieve this goal, as well as minimizing disruption to customers, vendors, and employees, depends on its management keeping the troubled telecommunications services company's business stable, say court papers filed Wednesday.
If Avaya achieves these goals, then Chief Executive Kevin Kennedy, whose annual salary is $1.25 million, stands to receive $1.25 million to $1.56 million as a quarterly bonus, court papers say. Avaya sought bankruptcy protection on Jan. 19.
The request to pay these bonuses comes a week after The Wall Street Journal reported that Avaya has begun reducing pension benefits for certain retirees. Retirees received notice from the company that it wouldn't make supplemental pension payments due in February and March, although pensions guaranteed by federal law continue to be paid.
An expanded version of this report appears on WSJ.com (
https://www.wsj.com/articles/avaya-looks-to-pay-executives-up-to-3-7-million-in-bonuses-1488485432?mod=mktw).
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-Lillian Rizzo ; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
03-02-17 2309ET
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