Borders Group Inc. (fka BGPIQ)

[Seminole Red]

Book retailer Borders Group Inc., which is shuttering hundreds of stores in a bid to stay alive, is seeking bankruptcy court approval to hand out more than $8 million in executive bonuses, including nearly $1.7 million to President Mike Edwards.

Papers filed with the U.S. Bankruptcy Court in Manhattan outline a proposed pay-enhancement program that is keyed to the company either reorganizing under Chapter 11 or selling itself as a going concern.



For Borders' five highest-level executives, the bonuses mean extra pay from 90% to 150% of their base salaries.

Seventeen top executives are covered by the largest program, which could add as much as $7.1 million to the pay packets of leaders who stick with the company in bankruptcy.


.A second $1.2 million bonus program covers 25 "director-level" managers "critical to the debtors' reorganization and to ongoing business," court papers said.

Saddled with leases on big stores, the Ann Arbor, Mich.-based book retailer has said it will try to get out of bankruptcy by August or September.

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