I DOn't Believe thAt MAny know or CARE why.
It has virtually nothing to do with ObamaCare. But I'm sure people will fingerpoint at their own usual suspects, and in this case chances are they'll be at least partially right. There's plenty of blame to go around.
http://management.fortune.cnn.com/tag/gregory-rayburn/I'm no exception; I note from the story how the unions made substantial concessions (thousands of jobs, and millions in benefits) to help Hostess return from bankruptcy in 2009; a while later, then-CEO Brian Driscoll tried to negotiate a $1.5 million base annual salary with a guaranteed $1.95 million if the company failed or if he was fired. The unions raised a stink about it and Driscoll ended up leaving anyway, but new CEO, Greg Rayburn, got the same $1.5 million salary. And during the summer of 2011, as the company's financial situation was crumbling, the top four Hostess execs each received raises of up to 80%. What lousy leadership. And the fleecing that goes on in the name of outside consulting and "advisory services" makes me sick to my stomach.
It's all in the linked story. It just seems like a trainwreck. IMO the big losers are the small guys - the workers who lost their jobs, and the retirees whose defined benefit plan has been underfunded.
