A&P Reveals Those Involved in More Than $12M in Insider Payouts Prior to Bankruptcy
MONTVALE, NJ - In A&P’s latest filing to the U.S. Bankruptcy Court, the company detailed $12.6 million in payments for executives and company insiders prior to the company’s bankruptcy announcement.
In the months before the company announced its bankruptcy, A&P reportedly paid out $4.6 million to company Chairman Gregory Mays. Payments from an undisclosed $6 million trust to top executives at Montvale-based A&P came to light several weeks ago, but details about these and other payments were not revealed until the bankruptcy court required the company to itemize payments made to corporate insiders during the year before the bankruptcy announcement.
Some of the company’s executive payouts, according to news source North Jersey, include the following:
- Greg Mays received $4.6 million in consulting fees and other payments during the year before the July 19 bankruptcy filing, including a $2.5 million payment from the special trust.
- Chief Executive Paul Hertz received a $1.5 million trust payment and a $225,000 bonus.
- Chief Administrative Officer Christopher McGarry received $2.3 million during the year leading up to the bankruptcy filing, including his salary, a $1.5 million trust payment, and a $225,000 bonus.
- Senior Vice President and Chief Financial Officer Tim Carnahan and Chief Strategy Officer Nirup Krishnamurthy each received trust payments of $250,000.
- Chief Merchandising Officer, Eric Kanterman, received a $100,000 bonus in May, and a $400,000 retention payment July 17, two days before A&P filed for bankruptcy.
- Top executives received monthly car allowances of $700 to $800 and reimbursements for expenses.
- Mays had the highest expense account reimbursements, with over $16,000 in reimbursements during the month before bankruptcy.
Bankruptcy Judge Robert Drain and legal experts had previously questioned the company’s decision to set up the $6 million “executive management plan secular trust,” which many believe is equivalent to creating a retention plan for its top executives in the face of many lower level employees being threatened with layoffs.
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