Three top executives at failed brokerage firm MF Global Holdings could be in line for bonuses of up to several hundred thousand dollars each under a plan by a trustee overseeing bankruptcy proceedings, people familiar with the matter told The Wall Street Journal Friday.
Louis Freeh, the former FBI director now in charge of unwinding what is left of the New York company, is expected to ask a bankruptcy-court judge as soon as this month to approve performance-related payouts for the chief operating officer, finance chief and general counsel at MF Global, sources said.
All three executives kept their jobs after the company's Oct. 31 collapse in order to help Freeh unwind the firm's assets and maximize payouts to creditors, the WSJ added.
Under the plan, the three executives and as many as 20 other MF Global employees working for Freeh would get the bonuses only if they hit specified targets such as increasing the value of MF Global's estate for creditors, according to the sources.
The WSJ reported last month that investigators were scrutinizing money transfers made during the firm's final days in an effort to uncover what happened to $1.6 billion in missing customer funds.
MF Global filed for bankruptcy on Oct. 31, hurt by bad bets that its chief executive and former New Jersey governor, Jon Corzine, made on bonds belonging to troubled European countries.
MF Global Holdings, MF Global, bankruptcy proceedings, top executives, chief executive, Wall Street Journal, WSJ
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