Jacksonville FL-based Winn-Dixie Stores Inc has asked for the go-ahead to pay its executives almost $14 million in retention bonuses and laid-off workers up to $120 million in severance benefits.
The supermarket chain said this would give key management personnel an incentive to remain with the company during its Chapter 11 reorganization, according to a bankruptcy court filing.
About 290 employees would be be given bonuses ranging from 25% to 150% of their salaries, to be paid in three installments, as part of the retention plan.
Not receiving a retention bonus would be Peter Lynch, Winn-Dixie's president and chief executive officer, though he would be eligible for a severance payment of triple his base salary plus a target bonus.
Qualifying for a severance package would be employees working for at least 60 days before their termination ``without cause.'' Roughly 28,000 full-time employees would get a week's salary per year of service, up to six weeks' pay. About 45,000 part-time workers would receive $200 if they worked for Winn-Dixie more than a year, or $100 if less than a year.
Severance payments would amount to $120 million under a ``worst-case scenario in which all stores are closed and all executives and employees are terminated,'' the filing said. ``The debtors do not contemplate that such a worst-case scenario will arise.''
The supermarket chain also requested to extend to Oct 19, 2005, the deadline for filing its reorganization plan. Hearings on these requests will be held June 16.
