Five West Marine executives were collectively paid $1.075 million in retention bonuses 16 days before the retailer filed for Chapter 11 bankruptcy protection May 17, a court document reveals.
Though it is not uncommon for companies to pay retention bonuses ahead of bankruptcy/reorganization filings to keep key personnel, West Marine owes its top 30 vendors $65-plus million.
The payouts made May 1 include:
- CEO Paulee Day: $425,000
- VP Chief Information Officer John F. Devine: $100,000
- Chief Human Resources and Supply Chain Officer Mark Howerton: $175,000
- Chief Revenue Officer Michael Hoye: $150,000
- Chief Financial Officer Sahil Wadhwa: $225,000
As Trade Only Today reported this week, big companies and large corporations are not the only ones being affected by the West Marine’s financial troubles.
Small-business owner David Kelton’s crab trap company, American Blue Claw LLC, shipped goods to the retailer but is still owed approximately $12,000.
“I am a small company that deals with West Marine,” Kelton told Trade Only Today this week after a bankruptcy hearing, “and when [I] hear bonuses of a million dollars going to these top people — I guess [this] goes to Ms. Day: Are you willing to give up some of your so-called bonuses or anybody else in the top tier to help the group down on the bottom?”
Counsel for West Marine did not immediately reply to a request from Trade Only Today for comment.
