Court allows Werner bonuses

Werner asks to be allowed to give its CEO a raise up to 40 percent.
DOW JONES NEWSWIRES
WASHINGTON -- Ladder maker Werner Co. has won bankruptcy court approval to pay up to 1.28 million in bonuses to 94 rank-and-file workers and seven top executives.
The Greenville, Pa., company must return to court next month to get approval for 2007 bonuses for the executives.
Judge Kevin Carey of the U.S. Bankruptcy Court in Wilmington, Del., last week signed off on the 1.28 million in bonuses for rank-and-file workers and on Wednesday said Werner could pay bonuses tied to the achievement of certain earnings targets in the fourth quarter to the seven executives.
Carey also said Werner could sign one-year noncompete agreements with each of its top executives in exchange for payments of either 100,000 or 150,000.
Werner is due to return to the bankruptcy court Jan. 18 to seek approval for the 2007 executive bonus payments. The company is proposing a 25 percent cap on any increase in the executives' base salaries for 2007, except in the case of the chief executive, who could see a salary increase of as much as 40 percent during the coming year.
2.6M in bonuses
Bonus payments for the seven executives could total as much as 2.6 million.
The 2007 bonuses would be tied to Werner's earnings before interest, taxes, depreciation and amortization. The committee of unsecured creditors in the company's Chapter 11 case has expressed concern that the 2007 EBITDA target would be set too low and said all major players in the case should have the chance to negotiate the earnings target.
Werner filed for Chapter 11 protection June 12, listing assets of 201 million and debts of 473.4 million. Its bankruptcy was prompted by several factors, including a heavy debt load and the high cost of aluminum and other raw materials.