Toys ‘R’ Us is seeking bankruptcy court permission to pay Dave Brandon, the company’s chief executive officer since 2015, a cash bonus of as much as $12 million for 2017, on top of a $2.8 million “retention” bonus he received just before the company filed for bankruptcy in September, the Wall Street Journal reported. Moreover, Brandon would be entitled to receive 40 percent of that bonus, or $4.8 million, within the first quarter of 2018, according to court filings. The request for a bonus for Brandon is part of a broader plan by Toys ‘R’ Us to award bonuses to company executives and rank-and-file employees ahead of the retailer’s crucial holiday season, the spokeswoman added. Brandon and 16 other top executives are entitled to a total of $32 million in maximum bonuses if the company’s earnings before interest, taxes, depreciation and amortization (Ebitda) hits $616 million for 2017, or 22 percent below the 2016 level of $792 million. Toys ‘R’ Us’ lawyers at Kirkland & Ellis LLP have said that hitting that Ebitda level is highly unlikely, according to papers filed in court last week.
