Top executives at Chicago-based Midway Games have been AIG-ed.
Outrage over a bonus plan for, basically, failing has forced the bankrupt company to revise its plan to award $3.75 million to 29 "key" employees.
"The Mortal Kombat publisher, already in bankruptcy and attempting to sell assets and stave off creditors, received a beat down in court this week from the government-appointed trustee overseeing the proceedings," Variety reports.
"The Debtors seek authority to pay bonuses to a selected group of officers and managers which are four hundred percent greater than bonuses paid to the same group in 2008 when the Debtors were not before the Bankruptcy Court," the trustee said. "Given the current state of the general economy, coupled with historical data related to incentive bonuses paid by these Debtors, the Motion constitutes an outrageous request and is not justified by the facts and circumstances of the case."
The Washington Post picked up the story - via paidContent.org - under the headline "AIG Meets Gaming."
The Motley Fool includes Midway Games in its roundup of questionable companies of which it asks, "Why Pay Insiders For Doing Their Jobs?"
The bankruptcy court is expected to review and rule on Midway's new plan - described by an offical as "'considerably less' than the $3.75 million that was proposed previously, and now payouts are 'variable based on the outcome' of the performance of key employees" - today.
