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Angry Judge Slams Bankrupt Hertz’ “Offensive” Attempt To Pay Another $5.2 Million In Management Bonuses

It’s not exactly clear what the lawyers of bankrupt Hertz were thinking but the first time the company spent a whopping $16.2 million on corporate retention bonuses just one day after it announced it would lay off 10,000 US workers and just days after it filed for Chapter 11, it made front page news.

Perhaps they were simply hoping that the bankruptcy judge overseeing the Chapter 11 case has a short memory or is senile, but whatever the reason when they requested that the management team of Hertz – which landed the iconic company into bankruptcy court for the first time in its 102 year history – be paid another $5.2 million in incentive-linked bonuses, the judge had had enough.

Judge Mary Walrath slammed the application for another bonus program, saying it comes too soon – less than 4 months to be exact – after the $16.2 million in retention money Hertz agreed to hand out to about 340 employees just days before it filed for bankruptcy in May. Walrath’s order also denied a new plan that would have split as much as $9.2 million among about 295 lower-ranking managers.

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