A plan by Residential Capital LLC, the bankrupt mortgage lending unit of Ally Financial Inc., to pay up to $33.4 million in annual bonuses to about 3,000 of the company's 3,926 employees drew an objection from U.S. Trustee Tracy Hope Davis, Reuters reported on Friday. Davis said in court papers that the annual incentive plan could not be characterized as being part of ResCap's ordinary course of business since it entered bankruptcy protection with the intention of selling its servicing platform and loans. The plan includes senior executives other than the company's chief executive, president and chief capital markets officer. In August, a federal bankruptcy judge rejected the company's plan to pay incentive bonuses to 17 senior executives, saying that the payouts were aimed at retaining them, not to compensate for increased responsibilities or performance, as required by bankruptcy law. An amended bonus plan, based on more ambitious performance metrics, was approved in October.
