Neff Corp. is proposing a bonus program for 10 officials at the executive vice president level and higher that might cost as much as $1.27 million, according to Bloomberg Business Week. Neff filed a prepackaged reorganization plan May 16 in U.S. Bankruptcy Court, Southern District, New York, and has a July 12 hearing for approval of the disclosure statement explaining the plan.
If Neff’s reorganization becomes effective by Nov. 30, its CEO would earn a bonus of $225,000 and its chief financial officer would get a bonus of $130,500. For each month’s delay, the bonus would drop by one-sixth. The CEO’s current base salary is $450,000, while the CFO earns $290,000.
Neff’s plan would reduce debt by more than $400 million, with most of the new equity going to first-lien lenders owed $90 million on a term loan.
Based in Miami, Neff Rentals is No. 16 on the RER 100.