GT Advanced Technologies, the former sapphire supplier that went bankrupt following a botched deal with Apple, is seeking to give millions in bonuses to its senior executives in hopes of keeping them in its employ.
Pay enhancement is necessary to motivate the key drivers in GTs bid to restore its business in bankruptcy, lawyers said. Court filings outlining the bonus proposal say GTs stock, once a major component of executive compensation, is no longer good for motivating performance by company leaders.
While it doesnt identify the recipients of the bonuses, the proposal reveals at least two programs. One outlines a payment of $2.275 million to nine top-level executives, and another seeks to pay out $1.4 million to 28 non-insider people.
GT hopes to schedule a hearing in January for the bonus programs, which require a judges approval to take effect on account of the companys bankruptcy.
A combination of mismanagement and substandard yields reportedly resulted in GT filing for bankruptcy early in October, after a year of failed attempts to produce usable sapphire screens for Apple.
The two companies settlement, which was reached later in October and approved just a couple of weeks ago, allows GT to sell its sapphire manufacturing equipment and pay Apple its debts, amounting to about $439 million, within four years.
Ultimately, the failed sapphire maker hopes to take advantage of the deal to rehabilitate its business preferably with its senior executives still on board.