Hostess executives to receive $1.8 million in bonuses

Hostess receives approval for up to $1.75 million in bonuses for its executives. The money is intended as an incentive for 19 top-level managers to stay on with the company to oversee its liquidation following a battle with its second-largest union. The payouts will be granted only if managers “achieve a set of specific tasks and goals within a specified time frame that are designed to speed and lower the cost of the wind-down,” said Hostess spokesman Lance Ignon.

The maximum bonus amount, Ignon said, represents 0.07% of Hostess’ revenue and 0.17% of the value of its assets and is below the average for bonuses in comparable bankruptcy cases. Hostess Chief Executive Greg Rayburn would be not be eligible for a bonus.