Taylor Kuykendall for SNL:
Peabody Energy Corp. is asking a bankruptcy court to allow the company to award “no more than $3.24 million” to 42 key employees.
As proposed, the program will cost approximately $2.74 million. The highest potential individual award is $134,000 and the average per participant is $65,200.
The company said the employees provide “vital services” necessary for day-to-day operations and noted that in exit interviews employees have been saying they were seeking higher levels of job security than the coal industry currently offers. The employees include those working in finance, operations, legal, sales, marketing, human resources and information technology.
Employees in the proposed program are divided into three tiers based on “relative importance to retain, difficulty of replacement and likelihood of departure.” The awards range from 25% to 40% of base salary payable on Peabody’s successful emergence from bankruptcy.
Full article: Peabody seeks bonuses as employees flee for job security outside of coal