Polaroid Rethinking Exec Comp After Retiree Criticisms

January 14, 2002 (PLANSPONSOR.com) - Polaroid has pulled a controversial executive compensation plan from the agenda of a bankruptcy hearing tomorrow, according to published reports.

Polaroid says it’s reworking the plan after criticism from retirees and workers (see Polaroid Retirees Try To Block Executive Bonuses ), according to the Associated Press.

The company had indicated it would revise the plan after a bankruptcy judge postponed consideration of all but $1.55 million in payments during a December hearing. As originally proposed, the package could have provided more than $5 million to top executives.

However, the week before Polaroid declared bankruptcy, several senior executives quit on fears the government would end up taking over Polaroid’s pension plan and cap annual payouts at $40,704. At about the same time, the filmmaker dropped medical coverage, life insurance, and severance benefits for retirees.

‘Our intention is to review everything, revise it and potentially submit another plan to the court,’ Polaroid spokesman Skip Colcord said, according to the AP report. ‘We’re looking at the total scope of the plan, the incentives that are built in, and the people who are covered by it.’

Polaroid retirees and laid-off workers complained that the company was taking care of executives even as it cut health benefits and warned the pension fund may be underfunded (see Polaroid Says Its Pension Plan Is Underfunded ).