The executives of Kadant Inc, a Westford, MA-based paper production equipment manufacturer, announced that they paid themselves over $1.5 million in bonuses for 2008 just after announcing that they would be laying off 32 employees. The irony of this is that the $1.5 million bonus amount could have roughtly covered most, if not all, of the salaries of the 32 laid off workers.
Chairman and CEO William Rainville received a $872,100 bonus on top of his $647,000 base salary. Chief financial officer William O’Brien and chief operating officer Edward Sindoni both received $185,200 bonuses in addition to their $288,000 salaries. Jonathan Painter, executive vice president, earned a $125,000 bonus in addition to his $240,000 in base salary. Eric Langevin, senior vice president, took home $143,100 in bonus and $225,000 in base salary in 2008.
To make matters worse, it doesn’t even seem like these executives deserved bonuses in the first place. In 2008, Kadant’s revenues decreased by 10%, the company suffered a net loss of $22.6 million, and the stock price dropped 54%.