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FirstEnergy Bankruptcy Payment Program Filed

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FirstEnergy Solutions (FES) filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing the Debtors to (a) continue to participate in and honor payments due to the Debtors’ employees in connection with the 2016-2018 cycle of the long-term incentive program of non-debtor affiliate FirstEnergy Corp. (“FE Corp.”) and (b) continue the annual incentive programs adopted by the Debtors for the 2018 calendar year.

The motion explains, “FE maintains a long-term incentive program (the ‘FE Corp. LTIP’) for FirstEnergy Group employees, including certain of the Employees….Approximately 101 Employees participate in the 2016-2018 cycle of the FE Corp. LTIP….The Debtors estimate that the total amount of unpaid bonus payments to the Employees on account of the 2016-2018 cycle of the FE Corp. LTIP ranges from approximately $1.9 million (at target) to approximately $3.9 million (at maximum)….The 2017 RLTIPs were designed to have a target value equal to one-third of the participants’ prior LTIP targets because the previous FE Corp. LTIP cycles (e.g., the 2015-2017 cycle and the 2016-2018 cycle) would continue to vest and payout.”

In addition, “For 2018, for Employees who are in positions that have traditionally participated in the companies’ long-term incentive plans, FES and FENOC each replaced their short-term incentive plans (i.e., the FES STIP or FENOC STIP) and the long-term incentive plans (i.e., the FES R-LTIP or FENOC R-LTIP) with one comprehensive annual incentive plan for FES (the ‘2018 FES AIP’) and one comprehensive annual incentive plan for FENOC (the ‘2018 FENOC AIP,’and together with the 2018 FES AIP, the ‘2018 AIPs’). Senior management of FES and FENOC designed the 2018 AIPs such that KPIs aligned closely with the Debtors’ 2018 business plan. The structure of the 2018 AIPs reflects diligent benchmarking efforts, based on both historical and industry analysis and consultation with outside legal and financial advisors.”

The Court scheduled a May 14, 2018 hearing on the motion.

Read more FirstEnergy bankruptcy news.

The post FirstEnergy Bankruptcy Payment Program Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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