Neiman Marcus is asking a federal bankruptcy court in Texas to allow almost $10 million in pay raises for CEO Geoffroy van Raemdonck and seven other executives as the company goes through debt restructuring, CBS News reported. The proposed compensation plan covers staff who are "critical to day-to-day operations" and Neiman Marcus' financial success during the bankruptcy process, according to a court filing. Neiman Marcus filed for bankruptcy protection in May after the coronavirus closed its stores. The Dallas-based clothing and department store was already preparing for a court-led reorganization of its $5 billion of debt. As part of the bankruptcy filing, Neiman Marcus said that it has secured $675 million in financing from a majority of creditors to keep operating during the restructuring. Those creditors now hold over two-thirds of the company's debt. The company said it is evaluating locations, but did not specify if it would close any stores. The pay raise plan goes against the typical timeline major companies follow during bankruptcy plans. Neiman Marcus employs about 13,200 employees, including 9,545 full-time and 3,655 part-time. Along with eight named executives, the compensation plan covers 17 senior vice presidents, 82 vice presidents, 40 directors and up to 100 additional key employees identified by the CEO as eligible. The group has seen "a substantial increase in their workloads without any concomitant increase in their compensation," the company said in the filing.
