WHITE PLAINS, N.Y. — A&P has submitted a revised incentive plan to U.S. Bankruptcy Court here that would provide its top executives with up to $3.7 million in performance bonuses. The incentive plan replaces one that was opposed by creditors and rejected by the judge in the case last month.
The retailer in its filing said the plan met with approval from creditors, citing changes to the original plan including increased EBITDA targets and a “force majeure” provision calling for A&P and its creditors to meet and jointly negotiate for any adjustments to the targets arising from extraordinary circumstances. EBITDA goals have been raised by approximately $25 million for each of the threshold, target and maximum award levels from the earlier plan.
The plan has also been expanded to offer incentives to Sam Martin, A&P’s chief executive officer, and to Jake Brace, its chief restructuring officer, who were not included in the original plan. Martin could earn up to $1.3 million, or 250% of his salary, for meeting the maximum performance goals over the seven-month period.
A judge in the case is expected to rule on the revised plan at a hearing on Thursday.