Bankruptcy Court Approves $15.4M Bonus Plan for Revlon's 'Critical' Employees
Revlon, the makeup giant that filed for Chapter 11 bankruptcy last month, will give 160 "critical" employees a bonus after a federal bankruptcy judge approved the bonus plan on Friday. The Manhattan judge in the U.S. Bankruptcy Court granted Revlon permission to spend $15.4 million as part of a "key employee retention plan," according to court documents. Revlon has grappled with a cumbersome debt load and a snarled supply chain, finding itself unable to timely fill almost one-third of customer demand for its products at the time of the company's bankruptcy filing.
The bonuses will go to employees who Revlon executives have deemed "critical to [Revlon's] restructuring process and/or day-to-day operations," the judge's order said. To be eligible for the bonuses, employees must commit to staying with Revlon at least through June 30, 2023 and through the confirmation of a bankruptcy plan.
Total Retail's Take: Filing for Chapter 11 bankruptcy protection allows Revlon to continue to operate while it works out its plan to repay its creditors and figure out its supply chain challenges. The bonuses, which come out to around $96,000 per employee, are an attempt to keep high-level staff around for the foreseeable future. Considering that there remains a strong demand for workers — employers posted 11.3 million open jobs in May, according to the U.S. Labor Department — Revlon believes it needs to take the extra step and offer bonuses to its most critical employees as an enticement to have them stick around. How Revlon's creditors, which are waiting to be paid, feel about this news wasn't reported.