Of course I found many conflicting stories, but no straight scoop. One thing I did find, however, is that the CEO that got the 300% pay increase is NOT the one that is now in charge. That was the man in office prior to him a man who is no longer affiliated with Hostess and hasn’t been for a bit. (source Forbes magazine)
I also found out when the current CEO took office he was hired to put Hostess back on his feet and that one of the things he did was declare he and all the top executives would get the salary of $1 (one dollar) for a year in order to bail out the company some. In exchange the unions agreed to the pension cut. The agreement was made and as part of the agreement one year later on January 1 the executives would go back to receiving their normal salary.
The company is billions of dollars in debt, the employees were given the opportunity to take an 8% cut in pay to stay employed, the union bosses lied to them telling them there was a buyer in the wings that would agree to all of their demands—there was no buyer and Hostess told them that prior to Thursday. The union chose not to settle. The lengthy strike had put the company in even further debt than originally listed and the CEO says that even if the union settled now the company could not be saved.
The company that let dh and ds go in 2009 kept a handful of employees after laying off 2/3’s of their staff. Those they kept were given no choice either take a 25% cut in pay or find another job. No negotiation, no would you, just “you will.” Guess what, every single one of them took the pay cut without a grumble. A job is too blessed hard to find in this day and age.
Something to remember here, the union employees are not the only ones that lost their job with this liquidation bankruptcy (their second bankruptcy in less than 10 years). So did the executives. If the company is gone, bankrupt, the executives don’t get paid either. Even if they get a severance pay it will be up to the bankruptcy court as to how much they get, not Hostess, not the executives.