GT Advanced Technologies’ attempts to make sapphire iPhone screens for Apple may have ended in disaster, but that’s not stopping GT senior execs from asking for millions to be paid out in bonuses.
Because the company filed for bankruptcy protection back in October, any bonus program needs to have the signature of a judge in order to be legally binding. GT is requesting a hearing in January, although it admits there is likely to be opposition.
The bonus program would cover 9 unidentified senior executives, and could add up to $2.275 million if all the necessary targets are hit. A second bonus proposal would pay a total of $1.4 million to an additional 28 people.
Since GT stock plummeted after it was revealed it wouldn’t be providing sapphire to Apple, court filings say that bonuses would have to be paid in cash, since stock is no longer considered valuable and useful for motivating performance.
CEO Tom Gutierrez notably unloaded more than $10 million worth of GT shares in the eight months before Apple announced the sapphire-free iPhone 6.
More than 800 jobs were lost at GT Advanced Technologies when it shut down its sapphire manufacturing facility in Mesa, Arizona. The company is currently selling off equipment to pay its $439 million debt to Apple, and reestablish itself.
In the meantime, sources tell Cult of Mac that talks are heating up with regards to bringing sapphire production under Foxconn. If Apple wants the necessary 100 million sapphire units it would require for 2015-era iPhones, it needs to find an operator for its Mesa plant.
Source: WSJ
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
12 responses to “Apple’s failed sapphire makers want to pay out millions in bonuses to senior execs”
Love Corporations. Bad management leads to bankruptcy, but oh let’s loot whats left in the bank before we leave. Disgusting. Exactly what is wrong with capitalism.
don’t blame capitalism, it happens in dictatorship and communism..
these are just awful humans period.
I hope the judge says no.
I can’t see how any judge would agree to that.
But the 1% of the 1% deserves their loot, every penny! After all, it is they who do all the sweating and working.
The 800 laid off workers only sat around and played Bejeweled with the equipment. /sarcasm
There’s a silent /s after my post.
Wall street 2.0: After the Meltdown.
$439 million in debt, 800 people lost their jobs , bankrupt and they have they have the audacity to want to pay out millions in bonuses to 37 executives? This is the problem with corporate America and its downfall as times go by. How much can we make now and not a care about the long term sustainability of the future. I hope that the judge denies these bonuses and instead have that money go to the people that lost their jobs and so on.
To play devil’s advocate, they have other profitable units. How would you like it when your earned bonus is lost because the dummy down the hall got in over his head? Been there. Holding on to the good ones is tough.
In America, every business and financial venture must pay tribute the country club overlords. Doesn’t matter if they actually do anything useful, their purpose is to skim off the top, be rich and happy and denote a percentage to the GOP.
Isn’t this corporate GREED 101, bankrupt the company and STILL get your millions in bonuses. Does anyone remember Enron? The good old days are still around.