retail news in context, analysis with attitude

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• The Wall Street Journal reports that Toys R Us, having filed for bankruptcy protection last September, now wants permission from the court to pay $16 million in bonuses to its top management, including CEO David Brandon.

According to the story, the bonuses also would go to “16 other top executives, including Kevin Macnab, president of Toys R Us International and Carla Hassan, global chief marketing officer who joined in February. The bonuses are tied to performance targets and milestones specified by lenders and payable if the company achieves earnings for 2017 at 30% below last year’s level.”

Toys R Us said in its filing that “it needs to pay the incentive bonuses to senior managers as the toy retailer gears up for its critical holiday season, where it generates 40% of its yearly net sales.”

I’d be a lot more impressed with a management team that wanted to pay the folks in the stores a small bonus as a way of both incentivizing and rewarding them for their continued hard work. But no, that’s rarely how top managers think. They’d rather be paid extra to stick around and fix the mess they helped create.
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