WHITE PLAINS, N.Y. — The judge in A&P's bankruptcy case last week approved a short-term incentive plan for the company's top employees.
The plan was revised from an earlier iteration that had been rejected by the same judge in March.
Judge Robert Drain of the U.S. Bankruptcy Court here said that changes to the plan that incorporated EBITDA targets helped gain support for the plan from the creditors' committee, which had previously objected. A lawyer for the creditors testified that a recent review of a 2011 business plan helped to change their position.
The approval came despite an objection from the United Food and Commercial Workers Union, which is scheduled to begin labor negotiations with A&P May 5.
The revised incentive plan would provide A&P's top executives with up to $3.7 million in performance bonuses. The plan has also been expanded to offer incentives to Sam Martin, A&P's chief executive officer, and to Jake Brace, its chief restructuring officer, who were not included in the original plan. Martin could earn up to $1.3 million, or 250% of his salary.