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View Full Version : Essar Steel Algoma seeks millions in bonuses for 23 key executives



Hans
12-01-2015, 10:21 PM
The company has served notice that it will ask a Toronto judge later this week to seek approval of the bonuses as part of a KERP (key employee retention plan).

It wants the court to keep the names of the management and operational executives secret, sealed in a confidential court file.

"The KERP is necessary to ensure the KERP participants continue their employment."

If the bonuses are not paid, there's a significant risk that the key executives will leave, the company says.
"If these individuals were to depart Algoma, it would be necessary to replace them," says ESA Chief Financial Officer Rajat Marwah in a sworn affidavit.

http://www.sootoday.com/content/news/details.asp?c=101826

What a dumb idea. They can leave at any time, like for example the day after they receive a bonus.
Oh, wait...

IMHO
12-01-2015, 10:53 PM
I always thought a bonus was for work well done....for going beyond the call of duty...for making a difference. Silly old me eh.
Local business men waiting for payment for services rendered at the plant have to be totally discouraged by the latest actions of Essar..a poor corporate citizen.

Hans
12-01-2015, 11:51 PM
Not to mention the fact nobody is irreplaceable. Especially not 23 "key executives".
Would be interesting to see names and positions.
I don't even know how you can operate a business with 23 "key executives".

Anapeg
12-02-2015, 08:01 AM
What are the chances any number of these 'key' executives had a hand in putting ESSAR into the predicament it is now mired in? Retention bonuses for a group of screw ups? ESSAR now rewards substandard work from their suits?

IMHO
12-02-2015, 09:35 AM
Essar employees should tread lightly on this one. I WOULD HAZZARD A GUESS THAT THERE ARE NO BUYERS WAITING IN THE WINGS TO GRAB ESSAR IF THEY DECIDED TO PULL THE PLUG.

ctf
12-02-2015, 05:20 PM
In the years since Essar took over they have added many layers of so called management positions. A majority that were reduced by the previous CEO Denis Turcotte. Theses are essentially Essar Global people brought in because our people did not know how to manage (insert sarcasm). They have added positions for the sake of adding them nothing more. A role once held by 1 individual is now held by 3 or 4 and added bureaucratic red tape issues galore.
So the lower level original management staff will I'm sure get the lowest KERF. Bleed the place dry, cry poor, ask for handouts, threaten to leave and kill a once Employer in this city. Too bad.
We can only hope the judicial system and major creditors put things in perspective and force transparency.

Hans
12-03-2015, 07:48 PM
There is an update to this story: http://www.sootoday.com/content/news/details.asp?c=101938

Barry Morris
12-03-2015, 11:05 PM
Check this one:

http://www.sootoday.com/content/news/details.asp?c=101885

"An American sister company of Essar Steel Algoma isn't paying its bills, prompting Minnesota Governor Mark Dayton to threaten to reclaim $66 million in state incentives unless the firm pays its local vendors in full.

Be nice if our government had that kind of guts.

Hans
12-04-2015, 07:17 AM
That would also require our government to first have invested $66 million in incentives...

Anapeg
12-04-2015, 11:16 AM
That would also require our government to first have invested $66 million in incentives...

There is more than a single sword to hold over the head of this Damocles.