$12.58 million for A&P insiders leading up to bankruptcy
$12.58 million for A&P insiders leading up to bankruptcy
A&P insiders received $12.58 million in payments during the year leading up to the company filing for bankruptcy protection July 19. Chairman Gregory Mays alone received more than $4.5 million in bonuses and consulting fees.
In a message to members, UFCW 464A President John T. Nicolai said, "This union finds those payments outrageous and unconscionable. We are losing our jobs from a mismanaged company that has the audacity to reward those that are causing our misery and strife. Your union strongly believes, and will fight for the concept that those funds should be recovered and used to benefit the union workers and the creditors."
In documents filed in U.S. Bankruptcy Court earlier this week, the company detailed payments made to current and former executives, as well as other insiders.
Paul Hertz, chief executive officer, and Christopher McGarry, chief administrative officer, each received a $1.5 million contribution from an executive management trust three months before the company filed for bankruptcy protection. Earlier in the year each received a $225,000 bonus for 2014.
Eric Kanterman, chief merchandising officer, received a $400,000 retention payment two days before the company filed for bankruptcy protection.
Less than a year after joining the company, Timothy Carnahan, senior vice president and chief financial officer, received a $250,000 contribution from the executive management trust.
The documents also provide information on payments made to these and other executives for salary, benefits, cell and car allowances, expense repayments, vacation time and holiday pay.