According to the U.S. Bankruptcy Court docket, Allied Nevada Gold filed a motion for entry of an order (a) authorizing and approving the Debtors’ key employee incentive program (KEIP) and (b) granting related relief.
The motion explains, “The KEIP divides the participating Employees into two tiers: (i) nine (9) non-insider Employees that have a significant impact on the Debtors’ short-term operational performance and the Debtors’ ability to achieve certain strategic goals (the ‘Tier 1 Employees’) and (ii) eighty-six (86) non-insider Employees who have an impact on the Debtors’ short-term operational performance (the ‘Tier 2 Employees’ and, together with the Tier 1 Employees, the ‘Key Employees’).”
The motion continues, “Pursuant to the KEIP, (i) all of the Key Employees are to be rewarded based on the achievement of certain quarterly operational goals (the Operational Goals) and (ii) Tier 1 Employees are also to be rewarded based on the achievement of certain strategic goals (the Strategic Goals). Quarterly awards under the KEIP will be paid to each Key Employee as soon as practicable after the end of each quarter, provided that such Key Employee remains actively employed as of the date of such payment….If 100% of the Operational Goals and the Strategic Goals are achieved, the total payout to the 95 Key Employees for the second and third quarter of 2015 will be only $1.396 million, consisting of $1.027 million on account of Operational Goals and $0.369 million on account of Strategic Goals. This equates to an average total payment per Key Employee of approximately $14,692….The $1.396 million maximum payout under the KEIP for Q2 and Q3 2015, on an annualized basis, would represent only 7.61% of the $36.685 million total annual cash compensation for all Employees, which is consistent with the maximum percentage payout under the Annual Cash Bonus Program.”
The Court scheduled a June 1, 2015 hearing to consider the motion, with objections due by May 26, 2015. Read more Chapter 11 news.