Texas judge approves millions in bonus payments for Saks’ top execs

Out of pocket vendors of Saks Global, which filed for bankruptcy at the start of the year, will likely have mixed feelings about the decision of a Texas judge, who has waved through millions of dollars of incentive pay for the beleaguered company’s top brass.

This pot of bonus money includes a possible bonus for CEO Geoffroy van Raemdonck of $1.5 million, as part of $5.2 million of payments for eight senior executives.

The  key employee incentive plan (KEIP) that the judge approved is essentially a way of keeping key senior personnel at the company as it navigates its way through its Chapter 11 bankruptcy.

The court filing said: “The KEIP has been developed with the overall goal of incentivizing critical senior executives and motivating the preservation and enhancement of enterprise value during this period of uncertainty.”

Additionally, a non-insider compensation program (NICP) is on the table, which would cover incentive payments and retention bonuses for about 385 of Saks Global’s staff.