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Peabody Asks For $11.9M In Executive Bonuses

Coal giant Peabody Energy is asking a bankruptcy court to approve up to $11.9 million in bonuses for six top executives.

In the court filing, Peabody argues the bonuses will encourage its executives to achieve certain financial, safety and environmental clean-up goals as the company works its way through bankruptcy. The bonus plan outlines targets the company has to meet in order for the executives to receive the bonuses. 

Judges have approved similar bonus packages for other bankrupt coal companies, including Alpha Natural Resources and Arch Coal, but Peabody’s would result in larger payout to individual executives.

If the company meets its stated targets, CEO Glenn Kellow’s salary would almost quadruple, from $1 million to $3.9 million.

In order to receive maximum possible bonuses, the executives would need to remain with the company until it emerges from bankruptcy.

The bankruptcy judge will hear arguments on the motion August 17.

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