Bankrupt RadioShack Still Wants to Give Executives Bonuses

The dying chain still sells golden parachutes

radioshack closedAt times, when someone hears about an age-old company filing for bankruptcy protection or closing the doors for good, your heart tugs a little. Perhaps it’s because you have been a consumer. Maybe that’s my problem.

Many of us grew up with RadioShack — figuratively and literally.

Before Best Buy, and the now-defunct Circuit City, there was RadioShack. A Fort Worth-based company (my hometown), it was the mecca for all your electronic needs. Unfortunately, the company has been hemorrhaging for a while. It had to stay closed on Thanksgiving to stave bankruptcy, went ahead and filed, and still got trampled by John Oliver.

This ad just wasn’t good enough on the rebranding front.

A little sad, but those tears dried up when the Wall Street Journal shared this fact: RadioShack proposes up to $3 million in bankruptcy bonuses. 

The point is to increase the sale price for the entire company, but the optics read, “fat cats get even fatter while common folks don’t get a thing”:

Eight executives and up to 30 other employees are in line for the payouts, which the company says are essential to maximizing the sale price of the beleaguered company and to keeping people from leaving during the bankruptcy process.

The eight executives up for the bonuses, RadioShack says, helped boost the sale price, which isn’t specified in court documents, by $30 million. So the company has no money, the brand has no awareness, and its employees have no job…but the supply of golden parachutes is healthy!

Under a so-called incentive bonus plan, which requires employees to achieve certain goals, the executives can be paid up to $2 million based on a sliding scale determined by the sale price. The maximum bonuses paid per person will be between $88,000 and $650,000.

From the moment a brand enters the marketplace, the quest for PR is on. Likewise, from the moment a brand determines its exit strategy, the merit of that PR work is on display for the public to see. RadioShack may be focused on a high sale price, but this is not a country that forgets the thud made by the fall-and-go-boom of any big conglomerate.

The 80s called, and they don’t want their favorite store or its huge “cell phones” back after all…