A proposal by bankrupt retailer Toys “R” Us Inc. to pay top executives at least $16 million in bonuses has drawn the ire of a Justice Department bankruptcy watchdog.
“Apparently, this Christmas, Toys ‘R’ Us intends to deliver not only ‘children their biggest smiles of the year’ but insiders, too,” Assistant U.S. Trustee Robert Van Arsdale said in court papers this week.
Van Arsdale slammed the proposed bonuses to both executives and “non-insiders,” such as store managers, saying there is “no plan of reorganization on the horizon and great uncertainty as to the projected recoveries by creditors in the cases.”
Earlier this month Toys “R” Us filed papers seeking approval to pay between $16 million and $32 million in bonuses to senior leadership, based on certain financial targets for the company. Chief Executive David Brandon would take part in the bonus pool, and could see a cash reward of as much as $12 million in 2017.
Also popular on WSJ.com: