General counsel, COO and CFO helped trustee after the firm collapsed.
When MF Global went down it was pretty clear it was a bust. But now the smoke has cleared and the dust has settled on the tidal wave of allegations against disgraced former New Jersey governor and CEO Jon Corzine, another problem has emerged.
The Wall Street Journal reports that the company’s chief operating officer, general counsel and chief financial officer might be able to cash in on a six-figure performance-based bonus even though the company is being liquidated.
Louis Freeh, the former FBI director who is charged with picking up the pieces from the debacle, is expected to ask a bankruptcy court judge to approve the bonuses of these executives and 20 others who stayed on to help Freeh pay off creditors and sort through the firm’s assets. The top three executives kept their jobs after the company went down in flames in October.
In November, the SEC launched a probe into whether the Wall Street firm made false statements about the $6.3 billion worth of risky European bets that caused the company to file for Chapter 11.
The bonuses of these executives will likely be slashed and would be paid in increments throughout 2012. ‘Under the expected pay plan, the three executives and 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,’ the Journal confirms.
