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Payday for Briggs & Stratton board
Old 06-21-2020, 09:42 AM   #1
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Payday for Briggs & Stratton board

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...nt/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.
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Old 06-21-2020, 09:50 AM   #2
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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.
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Old 06-21-2020, 10:07 AM   #3
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Makes one want to puke....
or short Briggs & Stratton.
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Old 06-21-2020, 10:16 AM   #4
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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.
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Old 06-21-2020, 10:32 AM   #5
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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.
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Old 06-21-2020, 10:37 AM   #6
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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.
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Old 06-21-2020, 10:52 AM   #7
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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/...in/5282350002/

Bombardier Class B shares closed at 34 cents on Friday.
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Old 06-21-2020, 10:58 AM   #8
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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?
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Old 06-21-2020, 11:12 AM   #9
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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.
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Old 06-21-2020, 11:17 AM   #10
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Originally Posted by Blueskies123 View Post
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.
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Old 06-21-2020, 12:05 PM   #11
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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.
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Old 06-21-2020, 01:46 PM   #12
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Originally Posted by Sunset View Post
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.
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Old 06-21-2020, 02:02 PM   #13
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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.
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Old 06-21-2020, 02:36 PM   #14
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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.
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Old 06-25-2020, 02:39 PM   #15
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Ah yes. The Super Hero Management myth. Chairman / CEO /President has been there 10 years, and the CFO for 5 years.
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