The U.S. Bankruptcy Court approved Claire’s Stores’ motion for entry of an order approving Debtors’ incentive and retention programs for certain key employees.
As previously reported, “The KEIP Participants are 7 key members of the Debtors’ senior management team who are responsible for determining the Debtors’ strategic direction and ensuring that the Debtors achieve their overall performance goals….The KEIP’s cost of $2.3 million to $5.6 million is also reasonable in absolute terms when compared to the aggregate costs of key employee incentive programs approved in similarly sized chapter 11 cases….The KERP Participants are 29 valuable, hard-to-replace employees who are not members of the Debtors’ senior management team. The job titles of the KERP Participants range from Vice President, to Associate Corporate Attorney, to Divisional Merchandise Manager, and the KERP Participants have an average salary of $182,166. Under the proposed KERP, KERP Participants would receive awards on the earlier of (a) thirty (30) days following the Effective Date and (b) December 31, 2018. To receive and/or retain their awards, a KERP Participant must be employed by the Debtors on the date that is 60 days after the Effective Date, unless such KERP Participant is terminated by the Debtors without cause. Awards under the proposed KERP range from 10% to 25% of the KERP Participants’ annual salaries, which percentages reflect the fact that certain KERP Participants are eligible for awards under the Annual Incentive Plan. The average award under the proposed KERP is $34,422.”
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