Payday for Briggs & Stratton board

[Mr._Graybeard]

Briggs & Stratton Corp. has chosen not to make a $6.7 million interest payment due June 15, but the company’s board of directors has voted to give executives and other key employees more than $5 million in cash retention awards, according to a filing with regulators. https://www.jsonline.com/story/money/2020/06/18/briggs-stratton-awards-5-million-executives-skips-interest-payment/3212505001/

Apparently the company has 30 days to deliver the interest payment to bondholders before officially going into default.

BGG shares have fallen from a peak of $10.50 to $1.50 over the past 52 weeks.

 

[Sunset]

OMG...
How exec's could reward themselves while ensuring the company ends up bankrupt should really be a crime.

They are basically stealing money from shareholders for their own benefit.
The company is doing badly from their previous decisions and this is just icing on the cake.

 

[pb4uski]

Makes one want to puke....
or short Briggs & Stratton.

 

[Blueskies123]

People do not realize why they pay retention bonuses. When he company is having problems all the good leave quickly. Someone needs to wind-down the company and deal with bondholders otherwise the company will collapse and bond holders will get nothing.

Working down a bankruptcy is horrific job that no one wants. If bond holders believed there was something appropriate they could try to claw them back.

 

[Sunset]

People do not realize why they pay retention bonuses. When he company is having problems all the good leave quickly. Someone needs to wind-down the company and deal with bondholders otherwise the company will collapse and bond holders will get nothing.

Working down a bankruptcy is horrific job that no one wants. If bond holders believed there was something appropriate they could try to claw them back.

Many companies paying the retention bonuses are paying them to the same clowns that did stupid things (often to enrich their bonuses) in the previous years. And the decision to pay the retention bonuses are made (then rubber stamped) by the same folks that get the bonuses.

The good folks left a few years ago already.

 

[aja8888]

Many companies paying the retention bonuses are paying them to the same clowns that did stupid things (often to enrich their bonuses) in the previous years. And the decision to pay the retention bonuses are made (then rubber stamped) by the same folks that get the bonuses.

The good folks left a few years ago already.

Whiting Petroleum did the same thing a couple of months ago. Shameful.

 

[Mr._Graybeard]

In the interest of full disclosure, I'm not sure BGG is headed into bankruptcy -- they recently announced they're opening a lithium-ion battery factory and have an agreement to supply an electric golf-cart manufacturer with those products. Then again, the company reported a $145 million loss for the quarter ending March 29, before the Covid pandemic really got rolling.

Times are not good in small-engine land. Bombardier recently announced they were ending production of Evinrude boat motors and closing the main engine factory near Racine, resulting in the loss of 387 jobs. https://www.jsonline.com/story/news/2020/05/29/evinrude-outboard-engines-shutting-down-eliminates-387-jobs-wisconsin/5282350002/

Bombardier Class B shares closed at 34 cents on Friday.

 

[Montecfo]

Retention bonuses are a real thing. You have to do these. Does not mean amounts are appropriate but knee jerk reaction reflects, I think, misunderstanding.

Why would anyone stay?

 

[Sunset]

Retention bonuses are a real thing. You have to do these. Does not mean amounts are appropriate but knee jerk reaction reflects, I think, misunderstanding.

Why would anyone stay?

Are they giving retention bonuses to their employees as well ?
Why would the employees stay is the same reason the exec's would stay.

Seems it would be pretty easy to hire another lousy, low skilled CEO from some other previously failed company as this current one does not seem to be very special at all.

 

[OldShooter]

People do not realize why they pay retention bonuses. When he company is having problems all the good leave quickly. Someone needs to wind-down the company and deal with bondholders otherwise the company will collapse and bond holders will get nothing.

Working down a bankruptcy is horrific job that no one wants. If bond holders believed there was something appropriate they could try to claw them back.

I'm sure they could find a specialist hired gun or two to do the deed for much less than $5M. Or retain a couple of guys currently in senior finance/accounting/ops jobs and offer them $500K bonuses to finish the full ride.

 

[pb4uski]

Retention bonuses are a real thing. You have to do these. Does not mean amounts are appropriate but knee jerk reaction reflects, I think, misunderstanding.

Why would anyone stay?

In this economy they may not have a choice, especially if they are viewed as being part of the problem at their current employer. WADR, these seem like bonuses in disguise as retention bonuses.

 

[travelover]

Many companies paying the retention bonuses are paying them to the same clowns that did stupid things (often to enrich their bonuses) in the previous years. And the decision to pay the retention bonuses are made (then rubber stamped) by the same folks that get the bonuses.

The good folks left a few years ago already.

+1 . It is called getting paid big time for screwing up.

 

[Montecfo]

Are they giving retention bonuses to their employees as well ?
Why would the employees stay is the same reason the exec's would stay.

Seems it would be pretty easy to hire another lousy, low skilled CEO from some other previously failed company as this current one does not seem to be very special at all.

I am not familiar with the specifics of the business or talent of the people given bonuses. Yes, it included employees as the article said, and this is typical.

And you do not give stay bonuses, typically to low value contributors or those you are willing to replace.

In my career, I never agreed to give stay bonuses, but in certain circumstances it makes sense, in my view.

 

[Mr._Graybeard]

In this economy they may not have a choice, especially if they are viewed as being part of the problem at their current employer. WADR, these seem like bonuses in disguise as retention bonuses.

This is true.

 

[GravitySucks]

Ah yes. The Super Hero Management myth. Chairman / CEO /President has been there 10 years, and the CFO for 5 years.

 

[Mr._Graybeard]

A little update: Briggs missed the "grace period" deadline on that late interest payment the board skipped to award themselves a bonus. Creditors have given them until Sunday to raise the $6.7 million before they demand immediate payment and effectively send the company into bankruptcy.

According to the JS, "The brief reprieve may have been granted to give the company time to work out the final details of a pending bankruptcy filing." https://www.jsonline.com/story/money/business/2020/07/16/briggs-stratton-given-time-raise-additional-capital/5441072002/

 

[pb4uski]

Too bad the bankruptcy judge can clawback the ill-gotton "retention bonuses" from the recipients for the benefit of the creditors.

 

[nap470]

On a lighter note, they did make very good lawnmower engines. My 1993 Toro with a B&S engine still starts on the 1st or 2nd pull every time! That's more of a testimony to their employees and QA, than executive leadership.

 

[Mr._Graybeard]

I've got an old Troy-Bilt (the old Troy-Bilt) Wide-Cut mower with an 8.5 hp B&S Intek engine that's about the same age. I have a B&S-powered snow thrower that's 40 years old (I have a thing for old machinery).

 

[wrigley]

On a lighter note, they did make very good lawnmower engines. My 1993 Toro with a B&S engine still starts on the 1st or 2nd pull every time! That's more of a testimony to their employees and QA, than executive leadership.

starting to see Kohler engines on lawn mowers and pressure washers.


Mike

 

[jazz4cash]

Payday for Briggs & Stratton board

I've got an old Troy-Bilt (the old Troy-Bilt) Wide-Cut mower with an 8.5 hp B&S Intek engine that's about the same age. I have a B&S-powered snow thrower that's 40 years old (I have a thing for old machinery).

Thanks for the update. What forums do you frequent to satisfy your old machinery habit? I have a shed full of old machines I was supposed to be fixing up once I retired since I would have so much free time. Turns out I really only had time to tear them apart.

 

[Walt34]

That's a shame. I've always liked B&S engines, it seemed that as long as I kept the oil and air filter clean and changed the spark plug once in a blue moon, the things would chug along "forever". Whatever machine the engine powered wore out long before the engine did.

 

[travelover]

That's a shame. I've always liked B&S engines, it seemed that as long as I kept the oil and air filter clean and changed the spark plug once in a blue moon, the things would chug along "forever". Whatever machine the engine powered wore out long before the engine did.

I put myself through college working on small engines. Briggs were one of the best. Tecumseh the worst.

 

[Mr._Graybeard]

Thanks for the update. What forums do you frequent to satisfy your old machinery habit? I have a shed full of old machines I was supposed to be fixing up once I retired since I would have so much free time. Turns out I really only had time to tear them apart.

Sometimes they aren't worth putting back together.

I don't find much online. The snowblower is a Bob-Cat, from the people who make the commercial lawn equipment. They got out of snowblowers long ago.

I tried to buy some parts for it from a shop once -- the parts guy came out of the back room and blew a layer of dust off the plastic bag they were in. Since then I've found I can use a lot of generic industrial parts from Grainger or even my local farm store.

 

[Walt34]

I don't find much online. The snowblower is a Bob-Cat, from the people who make the commercial lawn equipment. They got out of snowblowers long ago.

Here's one you might find useful, I post in there once in a while though of course there isn't much activity this time of year. Lots of hardcore [-]fanatics[/-] enthusiasts of old and new snowblowers:

https://www.snowblowerforum.com/