Bankruptcy Court Filings Reveal Crescent Resources’ Executive Pay
Documents show that In the 12 months before its bankruptcy, Crescent paid 17 top executives $9.2 million, an average of $543,000 each.
Palm Coast, FL – August 2, 2009 – Crescent Resources, parent of Palm Coast’s second largest real estate developer LandMar Group, paid 17 top executives a total of $9.2 million in the 12 months preceding its Chapter 11 bankruptcy filing in June according to an article in yesterday’s Charlotte Observer entitled "Court filings detail firm’s executive pay." Included in that amount is more than $3 million in what appear to be bonuses. The presidents of the residential and land-management divisions were reported to receive at least $1 million each.
Crescent Resources is jointly co-owned by Charlotte-based Duke Energy and the Morgan Stanley Real Estate Fund. Crescent reportedly lost $420 million in 2008. The court documents listed Bank of America as the largest secured creditor ($1.495 billion).
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Crescent bankruptcy and rewarding exeutives
Yet another example of giving extraordinary pay compensation for jobs not done well. How stockholders can justify giving out millions in bonuses to executives who lost money for their company is totally beyond my comprehension. Private business execs should be rewarded for job well done and/or when their division makes a profit. Amount of bonuses should reflect the profit in the exec’s division. If the company doesn’t make a profit and is in the red, how can the board of directors of the company reward the leaders??
Genworth Financial, for example, doesn’t work like that. Bonuses depend on how well the company is doing. Executives whose divisions didn’t do well, get smaller or no bonus.
Did we pay some of it?
The combined, LandMar/ Sea Ray, that Landon did just before they filed bankruptcy,(if it ever closed), may have put some our cash in their pockets. The rush deal was to be of benefit to the city, but all the rest of their holdings on Roberts raod and elsewhere are now subject to a posible liquidation order, if the courts see fit to do. Toby, do you know if this deal ever went through?